I entered into an individual IVA in Dec 2019 which has a condition that my wife should seek employment or otherwise apply for benefits. In April she became her mothers carer and subsequently receives £269 per month. The IVA specifies that 60% of this (after care costs) should be introduced into the agreement. However, the agreement does not allow her own creditor commitments for the combined amount of £94 to be considered which in the budget provides a false account of disposable income. How can this be introduced into the agreement? Also, was it permissable and legal to allow and specify my wife's income(s) into the agreement?
A few firms will work on household income, Payplan being one of them (as an example, hopefully not yours) . I think this is wrong, but having accepted that deal from the IP you are stuck with it. There are some valid reasons ( say, if your own income was insufficient to support an IVA) -- but this should be fully explained at the time. However, what is done is done and you have agreed to add this percentage into the arrangement. Additionally, her income increase allows her to bear a larger relative portion of your household expenses, therefore you pay less to these expenses, which increases your disposable income.
Playing Devil's Advocate even more --- if she cannot service her debts on 40% of the increase, how could she service them beforehand ?
None of this you want to hear, I am guessing, and I am merely attempting to anticipate the IP's arguements in justification.
On the other side of the coin, I would argue that the amount payable should be based on 60% of her disposable income or that her personal expenses also be allowed in the I&E calculations -- worth a shout, the IP might listen (but don't hold your breath).
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
Her carers allowance should only be taken into account in my opinion after all her travel costs, and her financial commitments are being met.
Push for this with your IP so at least her debt is covered off.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !