Is this all correct and fair?

[Hull_Tiger]

Hi All,
I am in the 7th month of a 66 month IVA now paying £448 a month. Debts were £47,000 and the extra 6 months is in leiu of equity release. All fine so far.
However, both myself and my partner are possibly due pay rises, me as I maybe changing jobs and my partner is being awarded a pay increase.
I put the feelers out with the company running my IVA to find out what the situation will be.
My problems are:
(a) My partners income is being included in the IVA even though her responsibility in the debt is for £1100 (2.2%) and that was only because I put her name on the bank account (which was already overdrawn) so she could use a debit card for shopping etc. Is this standard practice?
(b) I am being told that all of our respective pay-rises will be taken in contributions (£103 pcm for me, £55 for my partner). Again is this correct?
(c) I have made savings on my mortgage life insurance to the tune of £52 a month by switching companies and removing the sickness cover included. They are adding this on. Also my gas/electric is down to £52 from £89 because our central heating is broken (next to no gas usage). They are also wanting to take this £37 despite me explaining the reason.
(d) Our clothing budget for two of us is just £40 a month (£20 each). I protested about this at the time but they are still refusing to budge on this.

Altogether this puts up our payment to £695 from £448 which seems a bit excessive. I appreciate that they have to get the best deal for creditors but many things seem unfair and as some people have pointed out, where is the incentive to better yourself and earn more if you aren't seeing any benefit.
All opinions greatfully received.

[OPTIMIST12]

Hi hull tiger -

Can't comment on the point about the inclusion of your partners income (am sure others will suggest advice on that) - but this is what happened in my case.

I am 10 months into my IVA and recently had my annual pay rise. As I had had no significant increase in expenditure I was advised that all of this - except for a standard inflationary allowance - would need to be paid in.

However - there have been other cases on this forum where people have only paid 50% of their increase as increased contributions - or have been allowed to keep the whole increase at least until the time of their annual review. I can think of at least one case - I think it was Pixie - who argued the toss and was allowed to keep morwe than initially proposed.

The bottom line is - it seems to vary between different I.P.s / IVA Companies and there seems to be no wrong or right answer. Having said that - that is a mega-increase you are faced with. (And what happens when your central heating is fixed??). I note that you say you have only put out feelers with your company - why not get all your facts and figures together and speak with them - or your I.P.on a more formal basis. At the worst they can only say no - or you might be pleasantly surprised. Have you checked your proposal to see what it says about pay rises etc?

Good Luck!!

[MelanieGiles]

Hi there

Firstly, if your partner is not subject to the IVA, I would not be including her salary increases in your disposable income. If her salary increases, then good luck to her and I do not feel that it is right for your creditors to benefit any more from her contribution. However, if your salary ratios change, there may need to be some adjustment on the shared expenditure.

If you have made savings in your expenditure, then these will need to be passed on to your creditors, and I certainly feel that you should be allowed an increased clothing allowance.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Skipper]

This is an interesting post from Hull Tiger. You have saved ultility cost and this is going to creditors?? I thought you can make certain savings provisons that the creditors wouldn't take for a rainy day. Maybe that's for household expenditure only?

What part of any savings can debtors keep?

"Always think outside the box"

[Hull_Tiger]

Hi all,
Many thanks for all your replies. I'm certainly going to be arguing about these issues I think. I was perfectly ready to accept my pay-rise being applied to the payment but I do feel it is unfair to apply my partners to it.
Does it make any difference that her name was on the joint account? Her name doesn't appear on the IVA paperwork.
The advisor told me her income needs to be included as 'she has benefitted from the amounts I have received'. Most of the debts were aquired before I met her and the ones that weren't were taken on to 'consolidate other debts'. (God, I hate that phrase now [;)])
I think I will still be contesting the electric/gas and clothing allowance.

Happy Christmas!
Shaun

[Martin2011]

Hey Shaun,

If the advisor advising isn't your IP, I'd say thanks for the advice, but insist on checking the facts in person with your IP. They are the qualified person and will have the proper, expert and detailed knowledge, both of the IVA process and your specific circumstances. Have to agree that it doesn't seem right for your partners income to be included at all, and £20 each for clothes!?!.... you'll be in Matalan less often than I am!!

Good luck getting it sorted and best wishes for Christmas,

Martin

[MelanieGiles]

How does this person know that your partner has benefitted from the debts? She does need to deal with her own (the joint debt) but the rest are yours to deal with

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
I think the issue here is not so much that your partners payrise is to be included[however I do agree with Melanie that only if it changes the ratio should an increase be asked for]
What I do find unbelievable is that your utility bill has reduced, for a reason,and that you are expected to pay that saving into your IVA,also you have chosen to try and reduce other expenditure and again are penalised.Where is the sense in that and where is the incentive to save money ?
I suspect that you are dealing with a case worker rather than your IP.
I suggest a letter to your IP stating that you want and expect the utility allowance to stay the same as you are going to get the heating fixed and that you will be switching the insurance back if you are unable to enjoy the saving
Why do some companies create possible problems rather than supporting debtors,who afterall are sticking to the initial agreement ?
Fight your corner
Regards
Andy

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[Skipper]

Not allowed to keep your saved I/E in todays' money climate is tantamount to asking people to live on a breadline for five years. I rather go BR.Even if savings are made on ultity bills other things are going up to ofset the cost.

My case officer certainly said to me you can keep what you saved.


"Always think outside the box"

[Adam Davies]

Hi
I agree
If it is a variable expense that you control directly,like utilities,then you should be able to keep any savings.
If it is a fixed expense,like council tax,mortgage,rent,that you have no control over then any reduction should be paid into your IVA
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[Martin2011]

Confession....

Spent lots of time researching how to minimise utility costs..... turned out that moving out of 17th century cottage into 21st century barrat box reduced costs from £200 pcm (oil, logs and elec)to £90 (elec and gas). Passed the whole saving on into my IVA. Then looked into combinig the supplier and got the cost down to £80pcm and today, received a £20 Argos voucher for 'loyalty'. Not passing the Argos voucher on though, as decided that's the start of my saving for Christmas 2008.... seems a good plan and from experience so far, I know this is the right time to start....

Martin

[shellk]

just a quick question as new to this..am considering an iva as mega debts of 45k. i live with my partner , have a joint mortgage, and have a joint account which we do not use., all the debts are in my name , would he be involved in my iva in any way as obviously he does not want to have anything to do with my debts, have done this to him before and its now tough love, sort it or its over.. would appreciate the advice.. also am i best coming off our joint mortgage ??

shell

[Martin2011]

One for the experts I think Shell, but I'm sure you'll get the right advice and fing the right way forward. Best wishes and lots of luck,

Martin

[MelanieGiles]

Your partner's income will be taken into consideration to the extent that it is the basis for the way you share communal bills. In an IVA these days, creditors will most likely ask your partner to contribute his surplus income to your creditors, and therefore your IP will need to make it clear that this is not an option you will consider.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp