After paying my iva for 5 years i am now told the iva has failed because i did not increase my repayment when my salary increased.They have asked me to pay £18k or the iva will fail,
Hi Frances and welcome to the forum, it is usual to pay any increase in salary into your IVA along with any windfall/bonus. Was this explained to you and written within your proposal? When did the salary increase occur as I would have though annual reviews would have picked up on this within a revised I&E?
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
In a IVA there is a yearly review of your income & expenditure, which is where any pay increases & any increases in expenditure would be brought in & payments increased accordingly. Usually the pay is monitored by checking your wage slips or P60 or bank statements. Did your IP do these annual review & pay checks?
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Hi Frances....as above I'm surprised any wage increases were'nt noted in your annual reviews and IVA payments adjusted accordingly?
I send my payslips off every month to my IVA Company and also am obligated that within 14 days I pay them any "uplift" in my wages eg overtime over and above agreed amount.
Shocked that your IVA Company has failed to pick this up before and hope that you can get it sorted...£18k is a ridiculous figure to have to find and although I appreciate that theres always two sides to every story, it scary that they have failed to identify such a large deficit.
Good luck.
I came into this world with nothing and still have most of it left!
Welcome from me as well - you need to speak to your IP as soon as possible to sort this out. Perhaps you can get an extension to pay it off?
Did your IP not increase your payments at your annual review? I presume they asked for payslips.
Which company are you with?
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
Surely the IP should have spotted the salary increases at the annual reviews.
£18k is a massive net increase in salary, £3,600 (after tax) per year over 5 years; how have they calculated this figure?
I received salary increases of around 4% per year, but my planned payments did not increase due to justifiably increased expenditure.
My total payments into the IVA (including bonuses and sharesave plans maturing) were about £72,000, so another £18,000 to pay at the end would have been a massive shock.
Hi Frances - as the others have already said it is unsettling to hear these pay increases were not picked up and requested at your annual reviews. Were annual reviews conducted and which firm represents you? Do you have all the annual reports which would state that all was in order for the previous year and set out the repayment amount for the following year? Collect all the evidence showing you have complied with what was expected of you and speak to your IP. Not the office staff who manage your account but the actual IP. x
I find this incredible, if you have provided all what was asked for at each annual review & your IP has sent you responses to state no increases then this is obviously a mistake on your IP's part, my IVA states I must hand over 50% of any additional income above that in the proposal obviouly taking into account any increase in expenditure.
It is unusual to have such a lax IP but I have heard of one other case...if it is the case that no reviews were conducted during the term. However, it highlights the importance of taking responsibility for your iva yourself and understanding your obligations. If an IP isn't conducting reviews then you need to push for them. If you think there is an error in your I&E you need to point it out even if it's to your detriment. I'll climb down from my soapbox now[:I]
I agree BOL - you should have annual reviews but it is also down to you to inform your IP about any changes in income and expenditure.
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
The unanswered questions here are: Did the annual reviews take place? Were any increases in income declared at each one? and, Did Frances get reports after each review confirming that all was on track?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think Frances needs to give us some more information before we can give further advice.
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
It is incredible to note that this is only being highlighted at such a late stage in the process. I would be keen to know who is acting for you and whether they have been highlighting this to you along the way.
Blimey that is a sting, i agree with everyone and to be honest what was happening at the yearly reviews? I hope that you can sort this out or has the decision been taken already?
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
