IVA Conditions

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EduLaur91

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Post by EduLaur91 » Wed Mar 17, 2021 3:14 pm
Hello. Me and my wife recently entered an IVA with Financial Support Systems. In the begging when we discussed the conditions for our IVA they said that we are entitled to have a 500£ extra income on top of our monthly income for both of us. Now I can’t see anywhere on the contract about this and my wife was thinking of taking some extra shifts at work. Now I don’t want us to do something that will put the IVA on hold or getting us out of the agreement. Can someone tell me if I mighty have got it all wrong ? Is it possible that the extra income might be less ? Or is it best to call their customer service ? Thank you and have a good day all.

kallis3

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Post by kallis3 » Wed Mar 17, 2021 3:23 pm
Forgive me if I am wrong but why would you be allowed this extra per month? Is this your monthly outgoings? As for extra income, this will need to be accounted for by your IP and is usually 10%+50/50. Your IVA's will be interlocking or separate - not joint.
Sharing from experiences of dealing with debt
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Foggy

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Post by Foggy » Wed Mar 17, 2021 3:50 pm
Do you, by any chance, take home £5000 usually ? If so you IP is applying the 10% 50 50 rule to extra income ( overtime, bonus payments), whereby you are allowed an equivalent amount of 10% of normal take home pay and the rest is split 50 / 50 with the IVA.
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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kallis3

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Post by kallis3 » Wed Mar 17, 2021 3:57 pm
Just to clarify - this is £500 rather than £5k? Sorry Foggy if I am wrong!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Mar 17, 2021 4:27 pm
Wed Mar 17, 2021 3:57 pmkallis3 wrote:
Just to clarify - this is £500 rather than £5k? Sorry Foggy if I am wrong!
Yes --- £500 is 10% of £5k. So .... if the normal take home is £5k the 10% disregard will be the £500 mentioned by the IP. Of course, there is every possibility that I am missing something !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kallis3

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Post by kallis3 » Wed Mar 17, 2021 5:00 pm
Probably me reading it wrong!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

EduLaur91

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Post by EduLaur91 » Wed Mar 17, 2021 5:02 pm
So.. monthly income is around 3000£. All expenditures are around 2800£. And I pay one monthly payment for both of us .. since we both are included in the IVA.

kallis3

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Post by kallis3 » Wed Mar 17, 2021 5:27 pm
You are in an interlocking IVA - no such thing as a joint IVA even though you pay one payment. I am still confused as to where the £5k comes from? Again, I may be being very thick!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

EduLaur91

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Post by EduLaur91 » Wed Mar 17, 2021 5:30 pm
I didn’t say I’m taking home 5000. I just asked how much am I entitled to keep as extra cash because I can’t seem to find anything related to that in the IVA documents.

kallis3

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Post by kallis3 » Wed Mar 17, 2021 5:39 pm
Unless you earn overtime and/or bonuses, your expenditure should not leave you with any spare cash as any extra should be going to your creditors.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

EduLaur91

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Post by EduLaur91 » Wed Mar 17, 2021 5:44 pm
I found this on the documents sent by them:
“Where additional assets are to be realised, the Supervisor will be entitled to 15%
of those further realisations in addition to the total cost. Additional assets can
include overtime, bonus, commission, PPI, windfalls, after acquired assets, but
excludes any increases in regular income.
No additional fees may be claimed including, but not limited to: adjournments,
extensions in lieu of arrears, early completion or termination of the case.”

Foggy

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Post by Foggy » Wed Mar 17, 2021 5:52 pm
You said that your IP mentioned that you could earn £500 over your usual income before paying any extra to the IVA --- that suggested a take home, as I explained, of £5000 to produce this figure under the usual terms.

On a take home of £3000 this 'extra income disregard' would be £300.

After giving this further thought -- and you should clarify this with your IP direct -- was he referring to the windfall clauses: These state that, if you get a windfall (that is unexpected non- employment related income, such as a lottery win or inheritance, amongst others) if this is under £500 it is all yours and need not be declared. If it is over £500 it has to be declared and paid over to the IVA.

Anyway -- the overtime provisions will be in the proposal. In the 2016 version this is in Part III, "Your duties and obligations", para 8(7)
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Mar 17, 2021 5:54 pm
Wed Mar 17, 2021 5:44 pmEduLaur91 wrote:
I found this on the documents sent by them:
“Where additional assets are to be realised, the Supervisor will be entitled to 15%
of those further realisations in addition to the total cost. Additional assets can
include overtime, bonus, commission, PPI, windfalls, after acquired assets, but
excludes any increases in regular income.
No additional fees may be claimed including, but not limited to: adjournments,
extensions in lieu of arrears, early completion or termination of the case.”
This relates to Supervisors fees --- meaning as well as the fee based on the regular payment, they get 15% of anything else you pay in on top of that.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

EduLaur91

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Joined: Wed Mar 17, 2021 12:47 pm

Post by EduLaur91 » Wed Mar 17, 2021 6:03 pm
Ok. I think I got it like I was supposed to. So for example if I receive like anything below 500£ Let’s say like a gift from someone I get to keep it. If my wife does overtime and on the month she earn below 300£ as extra money after taxes then this will be ok. Am I right ? Sorry if I am a bit hard headed. :D

EduLaur91

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Joined: Wed Mar 17, 2021 12:47 pm

Post by EduLaur91 » Wed Mar 17, 2021 6:39 pm
Wed Mar 17, 2021 6:03 pmEduLaur91 wrote:
Ok. I think I got it like I was supposed to. So for example if I receive like anything below 500£ Let’s say like a gift from someone I get to keep it. If my wife does overtime and on the month she earn below 300£ as extra money after taxes then this will be ok. Am I right ? Sorry if I am a bit hard headed. :D
I forgot to say.. we rent so we don’t own a home if that makes any difference.
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