recently achieved a promotion and pay rise

[georgina]

I am undertaking an iva and I have recently achieved a promotion and pay rise. Will my monthly contributions automatically. Increase or can I stick to my current payment as I am only just managing to pay them.

[Dominic]

Let your IP know, chances are they will take it into account at the annual review.

[jamesfalla]

Hi Georgina

Welcome to the forum. I hope you find it helpful.

In terms of your payrise, you must tell your IVA supervisor straight away. Normally, you would have to increase your monthly payments by the amount of your increase less any offset if your monthly living expenses have also increased.

If you are currently struggling to make your IVA payments, you should make this clear to your IP. Is this because your expenses have changed or increased since you started the IVA? You IP may be able to allow you some extra money if your claim is reasonable.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[neverending]

Hi
Yes let your IP know straight away,you do not want a nasty suprise at your year end review.Generally any increase will have to go towards your IVA [Crazy i know ] but as James states make sure that you fill in a fresh income and expenditure form as by the sound of it you have underesimated your living expenses.My pay rise was eaten up by my increased travelling expenses and I was never asked to prove these........

[MelanieGiles]

Hi Georgina

From a practical point of view, most insolvency practitioners will pick this up at annual review stage. We are always grateful if clients let us know about pay rises in the meantime, but unless they are material an end of year review is usually sufficient.

The reason for this is that I usually like to see clients run a whole year to iron out any peaks and troughs with expenditure. As in Neverending's case, it appears that your good fortune has been easily absorbed by additional expenditure.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[georgina]

Hello all

Firstly I just felt better having people answer my question and I don`t feel so isolated now! So many thanks for your responses.

In reply to your responses, my IP currently asked for my payslips every 3 months rather than annually. I only started my IVA last May. Another question: I get a corporate bouns, which I want to pay to my parents as they have leant me a lot of money over the last couple of years. I suppose the question is: are IP reasonable and flexible in their approach to each case or do they have to work by the rules every time?

[Oliver]

It is likely that you will have to pay 50% of this bonus to your creditors (ask your IP or consult the terms and conditions of your IVA to confirm this), you will then be free to offer the remaining 50% to your Parents.

Remember, once your IVA is completed, the whole of your disposable income will be available to you and you can then use this (if you choose) to pay to your Parents.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp