Hi there me and my husband started our iva in Feb this year and part of our income we receive tax credits at £18 a week but now I have done my self employed tax return (which was less than normal due to mat leave that year) I have updated our claim and we will now receive £53 a week. I am very sure we will not get it next year due to working for a full year and my tax a year behind. We will also receive a £425 back payment. Do i need to iva company about it ? Will I need to up my payments? And will they decrease my payments if we don't recieve tax credits next year ? Thanks
You do need to keep them informed --- hiopefully they will write the increase in credits against the loss of earnings last year (did you get a reduction in IVA payments for this?). In theory they can and do reduce payments when income goes down, but, to be frank, seem more willing to increase when the income goes up !!
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
A few of us have had problems with Tax credits. I was put on higher payments because of tax credits despite the fact I told them I would lost them in 18 months. When I asked for a decrease a couple of years later, I was told that I could only do this if I capped the decrease on the end of the IVA and extended it. Like Foggy says, they are more prone to increase than decrease. I had a couple of other changes with reduced income and it took me an extra 11 months to pay my IVA off. This was with Debt Free Direct.
I was DFD and when my monthly pay dropped by nearly £200 a month on a permeant basis I still had to keep paying the £335 a month and I struggled but at no time did they decrease the payments even though my yearly review flagged this up thankfully I was living at home with my dad otherwise I would not have been able to survive as part of my allowances had to be used to pay DFD my dad supported me I wish that I had realised what help and advice this forum could have been to me then
Totally know what you went through - exactly the same for me. I joined this forum towards the end of my IVA and wish I had been on sooner. With the advice on here I would have stood up for myself more. The worse part for me was when I claimed back near £6k in PPI, all of which I did myself so DFD got the lot, I asked if I could withhold £60 for urgent dental treatment as I needed a tooth out which was agony...they told me they would only allow it if I paid the £60 back on the last payment...I borrowed if off my Mum instead on principle. There is no balance on IVA companies like DFD. I was fair with them all the way and always knew it was my fault I was in debt, never complained and was happy to have a way out. DFD did leave a bad taste in my mouth though.