Reducing payments vs risk of breaching agreement

[steviebluenose]

Hi,

Our target return to the creditors is just over 25%
Our family allowance has just reduced by £13.40 per week as our daughter is now 18 and off to University. So she is not in the house fora large part of the year, and so our costs will go down a bit. Apparently to keep things simple we should be able to keep our IVA allowances for outgoings the same. But due to the reduction in child allowance our income has gone down by £55 per month.

I am hopeful of a pay rise in December and this is where my dilema is.

If I get a £55 a month pay rise in December then as far as I am concerned I am quits, but if I continue to pay the current IVA payment for the next 3 months, then will they say that I must surrender half of my £55 per month???

I kind of want to go back and say I cant afford the current payment and reduce it by £55 per month for the next three months, but I dont want to put our IVA at risk by doing this. But I always think that if we get by with slightly less income then they will just come back and say "well you coped so you must be better off than you say".

Anyone else had a similar problem?

[Shining]

Not had a similar problem but envisage I will be experiencing this in two years time.

I'm sure others have come up against this so we'll keep this bumped up for someone else to reply to as I'd be interested in the answer too. x

[MrsKnight]

Hi - Ive had a similar situation but the other way round.
We had problems with our IVA from the start by being set on a very low Expenditure that was not true to our actual expenditure. We had set of in an IVA that was to fit the criteria to meet an IVA. My hubby the main income earner got a payrise & I was told to hand half of it over every month, which we did. Even with the extra we were still not coping & if it was not for this forum, I was given the courage to speak to my IVA company & a new I&E was done & the whole of the payrise was swallowed up but still made to fit our IVA payments. A year on my hubby got another payrise & we were still struggling, again I got onto the forum & still found our Expenditure was way below reasonable & I got in touch with our IVA company & did another I&E & again the increased income was swallowed up in Expenditure & our IVA payments remained the same.
With your drop in income & then payrise in December, which sounds to me as though its going to balance out to being what it was before your drop in income. I cant see them demanding half of it. I would get in touch with your IVA/IP & explain the situation to them.
Hope this long winded post helps.

[steviebluenose]

thanks thats fairly positive.
I will review our I&E and chat with PayPlan.

Steve ... 18 down 42 to go

[MrsKnight]

My IVA company which are BE where happy to swallow the extra into expenditure because in our case they could see it just was not realistic.
BUT because we have always managed to maintain our agreed payment from the start it ensured we were meeting what we agreed too.
Explain your situation - the drop in income & the possible payrise in december may just put you back in balance to meet your IVA payments & not rock the boat to much.
Good Luck Steve n let us know how you get on.

[Julie]

I would inform your IP of the changes now and then again if you get a payrise.

Let us know how you get on xx

[caveman]

this is reassuring ..... my partner and i have just taken a knock of £50 a week on tax credits so she wants to go back to work ..... i'll defo be having a word with IP to sort something out reagards expendture etc

[kallis3]

I'm with Payplan - not yet had to pay any payrise across as expenditure has also gone up and it won't be reviewed at the time but at your annual review.

When I send my quarterly payslips across I inform them of any changes then.

[vegas]

We are with Payplan.

I have recently had to ask for a change in my payments because my husband has become ill and is currently on half pay. As it stood the company my husband is with was othinking about terminating his contract..(now gone to OHS for medical retirement..long story) My advisor told me to pay £100 on each iva because that is the least they normally allow you to pay apparently.

I have always contacted payplan with any concerns i have had, anything really, and i have always sent in payslips on a monthly basis..because if they have them already then i havent got to faff about looking for paperwork every 12 months.

I have to be honest and say im not 100% happy with them at the moment...but i have upped my budget quite a few times when i have looked and there has been something wrong.

I also rang and told them when our energy bills went up 9.2%.

For our review i had a very quick call from them then a letter telling me that we didn't owe them any extra. If you keep in regular contact with the IVA company then there is a lot less stress.