Im writing this on behalf of my partner who is in an IVA. Just wandering what you guys think about this.
My partner had her annual review a few months ago, and there is now an increase in the surplus available. This is due to pay rises.
Her annual review is round about the end of each year December time. Last year Jan 08 we notified the IP that she had an increase in salary, they wrote back and informed that no increase was necessary. We again notified them that she had another pay increase in June, again the IP wrote and said no increase was necessary.
Now when we had to fill the Income and Expenditure form for the annual review the increase in Income has not been altered since the last review, and also the increase in Public Transport had not been increased when we informed them. After completing the form it showed quite an increase in the surplus available. So we wrote a note showing our concern that we had informed them of pay increases and the concern that they are now going to increase her payments by quite a considerably amount.
My issue is that they have let her have this extra money throughout the year, which was available, and we were expecting for the creditors to have, ie: increased payments, but they seem to wait until the annual review to then increase the payments. I would of thought that the creditors would want more money sooner rather than later.
I challenged this issue on her behalf, and got quite frustrated with the IP. My partner and I have no financial links what so ever and we are not married, and she lives in a property i own. I therefore in annoyance over this issue, decided to increase her rent and utility bills. The IP have now written asking why the increase, even though i submitted a signed letter to them informing of the increases, and why the Public Trtansport expenses have increase, which they were informed of quite some time ago. They have also quoted IVA terms and conditions about Breaching an IVA, because of the increased living expenses.
I know a little long winded, but would very much like any feed back, any further info you would like to know please ask.
If you can justify the increases in rent, travel etc being swallowed up by the cost of living then your partner will have to pay no extra. Just show all the additional costs on a revised Income and Expenditure form.
I had the same thing happen to me a few months back and they were trying to tell me I owed them £2500.00. When I submitted my I & E form I ended up paying hardly anything over.
As i am basically her landlord, im on the understanding that i can charge what i want for rent etc. Even if it does mean a large increase.
The reason why i increased Rent etc, is that i feel that if from her pay increases, we expected the payments to rise, and when they didnt we were obviously pleased. However i was extremely annoyed at the fact that they are now potentially going to increase her payments a fair bit from the yearly review. Even though extra money was available almost immidiately.
What is the point of therefore telling them and filling out an Income and Expediture form, if when you receive the form to complete for the annual review, it does ot show the increases that you have submitted with the salary increases etc. All it shows is the figures from the previous Annual review.
Below is a breif outline of the activity.
•Paying £260 per month on a Salary of £942 (at start of IVA).
•9.6.07 Submitted Salary Increase to £1171.
•3.7.07 Letter advising increasing payments to £310 per month.
•4.1.08 Letter advising payments reduced to £260 (Phoned who explained this decrease was due to inflation).
•28.1.08 Submitted Salary Increase to £1282 + increase to Public Transport.
•11.2.08 Letter advising No increase.
•27.5.08 Submitted Salary Increase to £1347.
•18.6.08 Letter advising No increase.
Our IVA company only ask for the wage rise increase to commence the month after the review has been completed if necessary after taking into account the change to cost of living expenses.
We had similar last year when hubbie received a £3k payrise - we were expecting to have to increase our IVA by £150 a month - however although we wrote to them with an offer of this increase, we received a letter back saying no change in payments to be made a few weeks later - therefore we have had a comfortable few months with this extra money which has in turn supported us to be able to maintain my very run down car properly and to also have a few nights out which we hadn't had for nearly two years !
Come our review in September this year, I am expecting them to once again tell us that our payments will need to increase - and I have calculated this will probably be £200 a month - that's fine as long as they they don't ask for the money dating back to the wage increase month last year !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I'm waiting for my first review now - I've just had a payrise so I hope they don't want too much off me!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
My whole infuriating annoyance on this matter is the fact that they should take any extra payment as soon as you have a pay rise for instance. Allowing you to have that extra money for a period of time is not good, as you can come to depend on it, and besides is it not in the interest of the creditors that payments are increased sooner rather than later.
It was explained to me that increases can occur immidiately, but reductions will take a variation to be submitted to the creditors.
As regards extra payment, all I can say is that if you think you are going to have to pay extra over - make sure you put it to one side. That way, there are no nasty surprises and if they don't want it, you've got some spare money!
If it is overtime money, then you are usually expected to pay that across within 14 days.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I thought the whole point of an IVA, was to sort out your debt, and to bring in some sort of order to your money.
ie: fixed monthly payments over a period of 60 months.
Of course if you have a payrise and more money is available, then im sure the creditors would want a little more money, rather than missing out on several months of extra money that you could potentially pay back.
However, whilst your payments are fixed initially, then they can go up every year. If this means that you pay back more into your IVA, then great.
I'm just saying that once you have told them about the extra money and they ask for it - fine. If not, you are not hiding anything, and you would be allowed to keep the money.
My company will be told about my payrise shortly, and will have a new I&E form.
I never work overtime, and get no bonuses either, but I am happy to pay across whatever the payments are set at.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Every step of the way we have informed the IP of any payrises (completing the Income and Expediture form each time)and they have written and said that there will be no increase in payments. Now since the annual review, they now are proposing to increase the payments.
I dont see how this is fair. Im not disputing that she should pay more back, what im disputing is that the extra money was availble early last year, and we informwed them and they didnt want anything. Now the annual review shows an extra surplus. If they didnt want any extra 6 months or more ago then why ask for it now.
I am so sorry that you have been given mis information from your partners IVA firm.
First point of call will be to see what clauses within the IVA trigger any additional payment into the arrangement.
Thereafter a carefully worded letter of complaint to the firm spelling out what you state here.
My own observation is that the past rises which they declined to take cannot now be reclaimed. However going forward a new I&E form needs to be completed showing what the extra net income works out at. Thereafter 45% or thereabounts could be claimed - but this is subject either to the clauses within the IVA proposal or by negotiation with the IP. You indicate that you can bump up the Rent quite high - however it has to be a fair and market rent and you do have a slight conflict of interest.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I do hope you manage to get it sorted satisfactorily Liberty.
Let us know how you get on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I tried to explain this on the telephone to the IP, and they counld not grasp the concept of why im querying this.
I have on my partners behalf penned a letter explaining all this and am waiting on a reply.
The Rent was not increased substantially only by about £40 a month (making it £400 per month, which i feel is still under what would be considered a fair market price), however i did increase utilities and council tax, so she is basically subjected to paying the full amount.
I understand the conflict of interest you say, however as i am not financially linked in any shape or form with my partner, and for the sake of the IVA, i could state that we are no longer partners, and she just resides in my property.
If your partner had a payrise and was told she didn't have to increase her payments until the annual review - this is what I was told in the short time I was in my IVA. Providing that she doesn't have to pay the money over now, she hasn't lost out.
I don't understand how saying that you are no longer a couple and she just resides in your property is going to help. If the IP was aware that you were a couple at the start they might think it strange that you were no longer a couple, but still sharing the house, especially in view of your letter of complaint.
