Change in Circumstances

[jdm8965]

Hi All,
Two years ago after a major operation resulting from cancer, and a subsequent nervous breakdown, my wife entered into an IVA. She was unable to work at that time for the reasons above and the basis of the IVA was that my income was included in the household income.
She is now about to start her first job with a decent income. Is it now possible to remove my income from the 2nd annual review process as it isn't my IVA and the debts are all in her name. Clearly at the time of the agreement, we were under significant stress due to circumstances and wanted to avoid the prospect of bankruptcy. I would really appreciate any advice and help.

[Michael Peoples]

Hi JDM and welcome to the Forum.
You would need to check the wording of the IVA and any modifications but what you are suggesting does seem more than reasonable.

You will need to do a new income and expenditure account showing your wife's contribution to the household expenditure and also her new work expenses. Her surplus could then fund the IVA or you could assist if there is a shortfall but certainly you deserve to benefit by keeping at least some of your own money.

Many congratulations to you both for getting this far and to your wife for getting back to work and hopefully good health. Discuss the case with her IP and I sure you can reach an agreement suitable to all.

[jdm8965]

Thank you Michael, I will check the wording of the agreement. I would assume that providing a relatively "similar" monthly payment was made, an adjustment or variation would be acceptable. After all, if my wife and I separated, surely the same level of payment would not be required?

[Michael Peoples]

Personally, that is what I would think but your own IP may have differing views. However, given that you have effectively paid your wife's IVA and she has now found work should mean that there will be benefits to you both. If the overall payment went up a bit creditors would also benefit so I believe there is certainly room there for a suitable compromise.