New Job

[Sarah]

Hello All

I have just got a new job that pays a lot more than what i was on when I went into the IVA and I have got a couple of questions.

1)is there any way that I can just increase my monthly payments instead of paying 50% of the extra that I have earn. Or would you recommend that I do pay the 50% as it may work out better.

2)The company offers great deal on mobile phone contracts that will save me a lot of money and they also offer them out to your family but the bills will have to go through my bank account. If I can prove and show on my statements that I am not really paying for the contract and that my mum for example will be paying the money into my account to cover this will this be ok to take out?

I hope this makes sense!

All help welcome!

[Oliver]

Hello Sarah

The short answer to your question is that you should contact your IP about these points to discuss them further.

I would suggest that it will be more likely that your monthly payment will be restructured if you are going to be regularly earning more in your new job.

On the face of it your phone proposal does seem reasonable, however, I think that whether or not you would be allowed to complete this arrangement would be totally dependant on your IP.



Best Regards
Oliver

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

[jamesfalla]

Sarah

The 50% rule does NOT apply to your situation. This rule is only used for ad hoc payments such as unexpected overtime or irregular bonus/commission.

As you have found a new job and will be permanently earning more, you must tell your IP. They will then have an obligation to review your income and expenditure. If you can increase your monthly IVA payments, this is what you will have to do. You will not necessarily be asked to hand over the whole of the increase. The additional amount you pay will depend on other factors such as whether as a result of the new job, your have any additional monthly expenses (eg additional travel costs).

In terms of the mobile phone contract, it sounds as though you will have to be the one signing up for the agreement (even if its your family are ultimately paying the bill). You must not take one of these out without the prior agreement of your IP as this would be breaking the terms of your IVA.

As Oliver has suggested, you must discuss both your questions through with your IP so they can help you.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[MelanieGiles]

Sometimes the 50% uplift refers to "any other additional money", so technically your pay rise would count.

What I normally do with my clients is leave payrises until the end of year review, then agree an uplifted payment with the client and then use the new salary as a benchmark for future reviews. Until that time, I suggest that you continue with the 50% as at least you are being allowed to keep half.

As James says you will need to check the exact terms of your IVA to be sure. I agree with James re his advice on the mobile phone contract.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk