I am in my 2nd year of an Iva with credit fix first yearly review last September went fine I submitted x3 bank statements x3 wage slips. I have in my 2nd year got a new job with a pay rise I was on understanding that I didn’t need to update this as this would be picked up on my yearly review. I’ve since heard that this may not be the case what will happen when they review and realise I’ve changed jobs and am getting paid more. Will they just re calculate and possibly bill me if deemed earned more than cost of living or can/will they breach my contract I’m so very worried. Thank you
You do need to inform them of your change of circumstances and probably do a new I&E. I doubt they will fail it.
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
Until recently permanent pay rises were dealt with at annual review and the increase taken into account the month following such a review and many IPs still do this. Some, however, introduce an interim review to capture such increases earlier (unfairly in my opinion, but, as ever, the drafting of the Ts & Cs is poor enough to allow some re-interpretation).
Best case scenario is that CF default to doing things they way they were intended and increase your IVA payment by 50% of the net increase from the review onwards. Otherwise, they might deem that the extra is payable from the date of the pay rise and either deal with it by adding the 'arrears' to the end of the IVA, or recoup with slight 'overpayments' until caught up.
It is in nobodies interests to fail an arrangement where a solution can be applied --- bottom line is that CF will lose a source of income, so will try to keep things going from that point of view.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
So if I just wait until September when my 2nd review is due I can just submit my paperwork and wait for them to bring up the new employer and wage increase and go from there then and take whatever it is they offer?
Also do you think it’s likely that they will ask for a whole years paperwork as I started the new job just after my first review which will be a year by time they contact me for the 2nd?
Sorry for all questions I really do appreciate your help
I have always taken the view that it is best to advise them as and when changes happen --- this can avoid potentially nasty surprises later on. You are obliged to keep them informed of financial changes. I used to tell me IP everything, whether he wanted to know it or not, and leave it to him to decide what to do about it.
When you get a chance, sit down with a cuppa in one hand and your proposal in the other and have a read. I find it is always better to be one step ahead of your IP and be able to challenge them when they make a mistake ( and they will ! ).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Agree with Foggy - you need to pre-empt this and speak to them rather than wait until your next review. Better now than later.
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
I agree that best to inform ahead of review especially if the change in income is significant and will change your monthly iva payment.
I would rather pay it early and pay more back to creditors in the long run than sit and worry for next few months about if, buts and maybes.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
