Iva payments new job

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Blueblonde123
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by Blueblonde123 » Mon Jul 09, 2018 4:43 pm
Hi all

I’ve been in my joint iva for under 4 years. My annual review comes up in October! I’m enquiry is regarding payments. I have been a student for 4 years of the iva and my partner has worked. I have been getting a student income but not very much plus we get tax credits. My question is I’m looking to get a job once I qualify in September and plan on having a full time job due to struggling month on month with money. If I work full time I will lose my tax credits my my income will increase by £800 a month. I can offset allot of that in I&E, I currently pay £200 a month but had to reduce my I&E due to not having enough surplus to meet the payment demands.

1. Will the IP want 50% of the £800

2. If I can prove where I need the extra income can I keep the extra?

3. I don’t really want to work full time but feel I need to as the increase in living costs and my child is older and wanting more.

Thank you for your time

Regards

Blueblonde :D
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Foggy
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by Foggy » Mon Jul 09, 2018 4:48 pm
The IP is not bound to offset the pay rise by increases in allowed expenses -- these are by negotiation and might not be accepted. However, the loss of Tax Credits should be taken into account and the potential payment increase would be 50% of the net income increase.
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Blueblonde123
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by Blueblonde123 » Mon Jul 09, 2018 4:56 pm
Foggy wrote:
The IP is not bound to offset the pay rise by increases in allowed expenses -- these are by negotiation and might not be accepted. However, the loss of Tax Credits should be taken into account and the potential payment increase would be 50% of the net income increase.



Hi Foggy

Thank you for the reply.
I’m a bit confused tax credits with my student loan came up to say £800. If I work full time I’ll be getting £1500 a month with tax. So how much would be taken off me would you say? I can’t really offset my increase with extra I&E I’ve never claimed hair dressers, school trips, pocket money, opticians etc.

Thank you

Blueblonde
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Foggy
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by Foggy » Mon Jul 09, 2018 5:08 pm
If you lose £800 but gain £1500, the net increase would be £700 so £350 would be due to the IVA, over and above the current payment. But, such drastic changes would probably mean a complete review and new I&E would be indicated.

Who are you with ?
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Blueblonde123
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by Blueblonde123 » Mon Jul 09, 2018 5:18 pm
Foggy wrote:
If you lose £800 but gain £1500, the net increase would be £700 so £350 would be due to the IVA, over and above the current payment. But, such drastic changes would probably mean a complete review and new I&E would be indicated.

Who are you with ?


Yes, that’s what thought. I’ll have an increase in child care if full time. More fuel costs would increase. I’m just trying to work out the benefits of working full time and that was going to be because we struggle badly month by month, but if the extra all goes to the iva (I understand I still owe the money to creditors) I might aswell just go to part time. My review is in October anyway and I wouldn’t start a new job until then anyway. I’m with stepchange they have always been very good.

Thanks
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Foggy
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by Foggy » Mon Jul 09, 2018 5:48 pm
You might "break even" in the new job, for a short while, until the IVA is done, but you will then have the full benefit of the extra income for years to come. Can you afford to pass up the chance of the job and hope you can get another later ? Not making any judgements, just being a sounding board :-)
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Blueblonde123
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by Blueblonde123 » Mon Jul 09, 2018 6:01 pm
Not really as my student loan finishes in September :-(. Is there nothing I can do interms of what gets paid over then? It will dentifentaly be 50% of the extra income even if I have more outgoings? Or is it at the desecration of the IP. I’m not sure what to do for the best. I’ve have studied hard for my dream job and not having to struggle so much each month.

Thanks

Blueblonde
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Foggy
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by Foggy » Mon Jul 09, 2018 6:18 pm
If you have more outgoings the IP / creditors might agree to allow them, especially if they are new job related (child care, extra travel, meals at work etc) as by allowing them they will get a little more anyway.
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Blueblonde123
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by Blueblonde123 » Mon Jul 09, 2018 6:25 pm
I will give them a call to see what they say. That will help decide on the outcome

Thank you so much for your help :-)
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