Expenditure increases and pay rises.

[louiseh]

I'm now into the second month of my IVA, and my question relates to additional expenditure not initially included in proposal. I'm not wanting to reduce my payments but when it comes to my first review will I be able to claim additional expenses funded by a payrise.

I work full time but am also studying part time for my Masters degree, in the 3rd and final year, all course fees have been paid (funded by secured loan last year), I do have expenses however, nothing major but, books, stationary, occasional travel to uni( studying through distance learning) etc. I know this years payrise would exceed this additional expenditure. How do I go about addressing this issue?
With respect to my proposal and payrises it staes 50% of overtime, bonuses and other income from employment. Does this mean I would keep 50% anyway?

[aguise]

Hi Louise
Yes you would keep the 50% and could ask for the other expenses to be considered from the other half, but keep your receipts as proof as they will ask for it.
No reason not to ask your company directly, they should be happy to answer.

Ang



Please visit my blog at http://aguise.blogs.iva.co.uk/

[louiseh]

Thanks for your reply. I could email IP, but to be honest I didn't want to ask about increasing my expenditure only 2 months in, ideally I'd just raise the point at the review, if I can fund my additional expenses between now and then with 50% of my pay rise then that would be okay.

[Oliver]

It is unlikely that you will be able to keep 50% of the surplus funds from your payrise as I think under your terms and conditions that the 50% only relates to overtime etc... However, if you have legitimate extra costs you may be able to use this money to offset these. Talk to your IP re these points. I would reccomend you bring these up now and not to wait for your review.

Best Regards
Oliver

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

[louiseh]

Actual proposal states, "In addition to the monthly contributions, I will pay 50% of the net value of my overtime, commission, bonus or other additional sums, which I recieve from my employment. The supervisor will review my payslips every 12 months to ensure my compliance with this undertaking." I will have to contact IP to clarify this, as I can't see what other additional money I could recieve from employement accept payrises. I don't receive OT/Bonuses or commission anyway.

[aguise]

Hi oliver hope you are well
The reason I said it may possible is that my proposal states 50% of all rises in income above the amount stated in the proposal this includes overtime bonuses and rises in basic income therefore including payrises. Louise says overtimes binuses and other income from employment this would mean the payrise also ? If so then the legitamate costs could be offset from the extra monies.
Hope you know what I mean.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[catullus]

Whether you keep 50% of any increase in your new reviewed DI depends upon what type of review clause you have in your proposal,

TIX new protocol allows you to do this (although they are very stingy with their expenditure allowances) whereas the older type of clause implied that the whole increase went in to the proposal but gave the IP much greater leeway to review your expenditure more leniently.

This annual review clause is normally separate to the 50% of overtime, bonuses etc to which there has been no change.

[louiseh]

The only other reference to contributions is

The supervisor will review my income and expenditure every 12 months through out duration of the IVA and if he deems appropraite will claim additional contributions. I assumed that all this meant I kept 50% of payrise up until review, new I&E set, contributions rise from this new figure. I would not expect to keep 50% of payrise from this year for duartion of IVA only up until review. My additional expenditure would last for 2 more years maximum. (dealine for MSc submission sept 2009)

[aguise]

Hi Catallus the only bit I can find about review is in the modifications and says supervisor should conduct an annual review of I and E to make sure the debtor is making maximum contributions. Mine is eight months old not a tix one I dont think/ hope.
Sorry if I sound daft but would like to understand.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[catullus]

That's OK.You've got the old style mod which is good. Sensible IP = sensible review but the 50% doesn't refer to this. The review will give you an opportunity to (perhaps) review your expenditure more thoroughly than you were able to at the time of the IVA and offset those increases against any increase you get, hopefully resulting in no increase in contribution.

[louiseh]

But would they claim back the payrise from the year up until the review if my expenditure did not increase enough to cancel out the payrise. Do I put all payrise aside in case they don't allow the expenditure and try and make cut backs in other areas. If my I&E is only reviewd annually, how do I know whats acceptable, I may have spent the payrise (or some of it) up to the review covering my additional expenses.

[aguise]

Hi and thanks
I have just had a six month review and all has worked well and though I have had a rise and we have done a lot of overtime (paid monthly) it has worked out right and there has been no change I did a silly spreadsheet to keep track of it all and did offset the rent increase from it, and a couple of things. They have been great and allowed them with no problem.
Thanks again Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[aguise]

Louise
I just ring my ac manager and ask, I dont wait for review, as I dont want any nasty shocks, if you ring them they can let you know if they will allow it and then if you need to put any aside you can.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[catullus]

In theory they could back date but in practise I don't think that they would bother. Probably best to ask your IP firm directly what their policy is,

[louiseh]

Thanks for your replies,
I Have emailed IP, will hopefully get some answers next week.
Thank you all.