If amount proposed for IVA is not accepted

[louiseh]

If my IVA proposal was for say £750 but this was not accepted, say they wanted £800 (so decreased my expenditure by £50). If I knew that in a few months time I may get a £50 per month payrise, could I accept at £800 and then keep the additional £50 per month as based on my calculated expenditure or would creditors take the extra money as I would have agreed to their expenditure amounts by accepting the IVA. Just hypothetical at the moment.

Thanks

[Sadsack]

Hi louiseh

As far as I understand (and I am sure someone will be along to correct me if I am wrong) any increase in salary needs to be given over to the creditors for them to achieve the maximum return. If you trawl through the posts on this forum, you will see that there are quite a few people who have taken the pay rise and have had to hand it over. I know this sounds dreadful, but you would be better off not going for a promotion or taking a payrise.

Hope this helps

Sue

[louiseh]

The payrise would just be the usual annual pay increase, no promotion etc. The reason for me asking is that I wouldn't want to accept an IVA that i couldn't afford, but my salary is revieved in july so any pay increase may make it affordable, my creditors meeting should be around mid june.

[Adam Davies]

Hi
Sadsack is correct but if the scenario crops up you could agree to the extra on the understanding that the first £50 of your next payrise you keep.Worth a try ?
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[louiseh]

Thanks for your replies, asking to keep the first payrise may be a good idea. All hypothetical at the moment but just preparing myself for all eventualities, if IVA not accepted at the first meeting I could always ask for 14 days adjournment that would take things into july so i'd then know about the payrise and raise the point then.

[tracy.h]

Hi Andy i thought a pay rise was automaticaly swallowed up in your iva?

[MelanieGiles]

If you were my client, I would certainly not seek to up your payments into the IVA when you received your payrise, if the creditors has also increased the payments at the creditors meeting. This would seem a little unfair - especially if I had taken a lot of time in investigating your expenditure, and showed the amount you could really afford.

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

[Adam Davies]

Hi Tracy
A pay rise is normally swallowed up into your IVA but in Louiseh,s case[hypothetical one] you could justify asking fot it to be overlooked as the IVA payments were increased at the creditors meeting.At the end of the day it,s the IP who makes the decisions regarding the day to day operation of the IVA as they have been empowered by the creditors and as Melanie has shown they have a certain amount of discretion.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[louiseh]

Thanks very much for your replies, I will keep them in mind if the case arises.