I have been in an IVA for 1 year

[danj]

I have been in an IVA for 1 year. I am married, but as the debt was in my name & pre-dated our marriage I entered into the IVA in my name only on the advice on a helpline counselling service. If my wife becomes pregnant would I be able to reduce my monthly payment? I am currently paying more than originally outlined in my proposal due to pay rises in the last year. I think I could still manage to pay the amount originally agreed, but no more. I believe under an IVA I should only pay my share of household bills, but if my wife & child become dependent on me what would happen?
Could the IP still insist I pay the higher amount & not take in to account the fact I have dependents?

[ivoriva]

Was her income used to calculate your share of household bills in the original proposal? If so, I would imagine you will need to contact your IP and re-do an I&E as presumably your wife would get some benefits and this would be her new 'income' so would mean a change in the share of household bills. Also, you would be able to add new expenses for costs associated with the baby etc. It would most likely result in calling a variation meeting, in which your creditors would vote again. But I would think they will be sympathetic to your reasons for requiring a reduced payment. As long as the revised I&E is presented correctly.

[danj]

Yes my wifes income was used to calculate my share of household bills in the original proposal.

I hope additional expenditure relating directly to the baby would be OK. My concern is that any benefits which count as my wifes income would not cover her share of household expenditure. Would creditors / my IP accept a revised proposal that includes me subsidising part of my wifes household expenditure?

I am confident I could still pay the monthly amount set out in my original proposal, but not the increased amount I am paying now.

[MelanieGiles]

Hi danj

Your IP would have to take account of your changed circumstances, if you decide to have a family and lose her income, but this will not necessarily mean that the IVA will continue to be viable. This is something that you must simply deal with at the time if such event occurs.

As Ivor says, your overall family income and expenditure would firstly need to be reassessed to see whether you could continue to make any form of repayments at all, and if so what impact any reduction would have on your IVA in the long term. If you need to reduce the payments, this may be possible by asking your IP to call a revised creditors meeting at which you can present amended proposals.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[danj]

Many thanks Ivor & Melanie for your help. Since finding this site I have learned so much & the advice & support given by other people on here is priceless.
It really does enable people to be happy & get the most out of life whilst still ensurng the terms of their IVA are adhered to.

[Adam Davies]

Hi danj
quote "I am confident I could still pay the monthly amount set out in my original proposal"
If after completing a new income and expenditure form you feel that you can still pay the original amount that your IVA was set at then there should be no reason why it can,t continue.I would even question that a creditors meeting would be needed as you will be returning at least the original dividend.
Good luck and please keep posting
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp