Hi there, I entered into an IVA two and a half years ago. Shortly afterwards my disabled son was awarded DLA. I was informed the DLA would not be calculated as household income. My child tax credits and housing benefit increased due to the DLA and I was also granted Carers Allowance. I never thought to inform my IVA practitioner of the income increase as it was in benefits not earnt! Today I received a request for income and expenditure details for the 1st time since the IVA was set up. The 'disposable' income I have left is much higher than my IVA amount. What action can be take against me due to the failure to inform them of the income increase?
They could fail the IVA ---- the source of the income is not the issue -- it is still income. They may agree increased payments or an extension to cover the arrears. The DLA element is usually offset by the expenses it is designed to cover, so that bit should be OK. But about half the increase in TC will need to be paid over somehow.
Your IP has to bear some of the fault here as they should conduct this exercise annually and, if they had done their job, it woud have been caught earlier.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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