Thanks everyone, I spoke to StepChange but unfortunately whilst waiting for the amount to be added to my IVA I did face a deduction in my pay this month. On a separate note I’ve just been informed about a pay rise from work however the letter from StepChange isn’t very useful and just informs me that I can make up to £1605 a month before I have to make 50% contribution to IVA. Does anyone know if this is before or after tax?
A permanent pay rise is not dealt with under the 10% 50/50 rules --- there is no 10% disregard and your IVA payment will increase by 50% of the net increase in income. Generally this is taken into account at the next annual review, though some firms 'cheat' and introduce an interim review to account for an increase earlier.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Mon Apr 05, 2021 7:04 pmFoggy wrote:
A permanent pay rise is not dealt with under the 10% 50/50 rules --- there is no 10% disregard and your IVA payment will increase by 50% of the net increase in income. Generally this is taken into account at the next annual review, though some firms 'cheat' and introduce an interim review to account for an increase earlier.
So they could ask me to do an updated I&E? To gain the extra now?
As Foggy says - some can ask for an interim review but a lot will wait until the annual review. I don't know how Stepchange operate.
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
Mon Apr 05, 2021 7:04 pmFoggy wrote:
A permanent pay rise is not dealt with under the 10% 50/50 rules --- there is no 10% disregard and your IVA payment will increase by 50% of the net increase in income. Generally this is taken into account at the next annual review, though some firms 'cheat' and introduce an interim review to account for an increase earlier.
So they could ask me to do an updated I&E? To gain the extra now?
I have seen this done, but not, so far, by StepChange. This is one of the terms that have, of late, been twisted by some IPs, being badly drafted in the first place to allow for such manipulation.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Just got a response from Stepchange: You can earn up to £1605 within a calendar month.
If you earn above this amount you must declare it to me and pay 50% of the amount over this threshold to your IVA.
I can confirm that this threshold is based on your Net pay meaning what you receive after deductions.
Your threshold is also 10% higher than the income used on your budget.
(I already told them my new annual income before tax so I’m guessing them saying this I’m in the clear. I believe I just about skim the max monthly amount too)
Just wondering where I stand with this. Tonight at 9pm I got a text from HSBC (basic account) stating I have gone into overdraft. I was shocked as I haven’t used it recently, I logged on to discover there was a payment taken today of £28 to Lush UK website. I phoned the bank right away in which they told me HSBC rightfully took this for a transaction back on the 30th December. Of course this was a really long time ago so I’m a bit fuzzy I don’t remember it. I went back through my statements to find there is nothing for the amount for that date or even later. The agent told me it was rightfully taken and that he cannot give me further information and that I need to call the financial guidance team tomorrow to question it.
My main query is why on earth was this only taken now if I did spend this back in December?! As I explained my accounts were frozen New Year’s Eve…. Surely the funds should have been taken sooner than now if this is the case.
I am assuming Lush were included in your IVA? Either way as far as I am concerned HSBC should not have taken anything out of a frozen account and the bank account should have been closed by now. You need to make sure they do this.
Speak to their financial team and see what they say and let us know.
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
As has been mentioned before HSBC do not play well with those of us in an IVA. It is possible that you purchased something in Lush and forgot about it and Lush have only now put it through the system ( it does happen!). As it was via their website you should be able to trace any email acknowledgement or log in to the Lush website to see previous orders.
In any event you need to clear this overdraft, otherwise you could be looking at them closing your account. I know it is galling, but you can then go on to make formal complaints and maybe go to the banking ombudsman, but that will all take time.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sorry - forgot that was her bank account! HSBC were a nightmare with us.
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
Thanks all, after going through everything to find out what this it. It was indeed a purchase I made back in December but as they explained Lush only taken the money now! It’s nothing to do with HSBC, obviously with it being my buffer account it did make me overdrawn but as she explained she received the promise to pay and of course I did right away after the phone call so no further action will be taken now. (Phone call this morning with the financial guidance team)
I went on to ask about my enquiry I made back in January to get in writing that they do not use the right to offset anymore on IVA customers or basic bank accounts so I’m taking her word and her bosses word for it. (They can’t get it to me in writing)
She did ask how my finances are now that I’m on the IVA etc. Deffo got way more help than I did last night to the normal call center.
I know it’s risky but I do plan to move all my banking back to this account as I really would prefer to have them as my main account.
Just a bit of an update and seeking some clarity, down to personal reasons and mainly being issues with my tenancy being on an IVA I have got a 3rd party (my mother) who is willing to pay off the remaining of my IVA off.
I got this response from StepChange this morning but I’m a bit confused as I worked out this amount (£4410 based on 11 months in on £90 a month) not sure why they worked it out a little bit higher? I did say I would pay the Novembers amount as it’s literally so soon.
“ You’ve advised that you’d like to complete your IVA early with a 3rd party offer of £4,410.00.
As advised, the amount remaining to be paid into your IVA is £4,590.00 based on your current expected payments.
Your next IVA payment is due on 01/11/2021.“
Anyway I replied with the details as they need to do identity checks etc on my mother and then said she would offer the full amount required?
A few quid here and there is of no import to most IPs / Creditors and a full and final offer, although based on remaining payments is often a reduced amount, reflecting the consumers ability to raise a given amount and the fact that there will be a saving to both IP and creditors in administration costs over the 4 years you are saving them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
