Hi
Im only recently in my IVA. Its just in my name and not my husbands but my husbands income was taken into account to work out the I&E.
Now my question is if my husband reduced his own personal outgoings by clearing his own debts would my IVA payment go up? Would he be expected to contribute more to the household? or over his share of the household bills reducing mine thus increasing my iva payment?
Thanks
Last edited by OnTheUp1976 on Tue Apr 02, 2013 7:40 pm, edited 1 time in total.
That's a very good question. I think the I&E is completed to ensure that a fair share is paid by both for living. So long as that share is maintained I don't think the extra income for his debts would be affected. However, I'm just someone in an IVA so do take the advice of the experts.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
It depends upon how your own IP works, OnTheUp. Most IP's only use the solvent partners income to work out their fair share of household expenses, so, if they earn more they will be expected to pay a little more in proportion, which will free up more disposable income from you to the IVA. So, if the income increases this comes into play -- however, if his SPENDING changes ( with no income rise) then there will be no change to the payment ratios.
However, a few IP's use HOUSEHOLD income to calculate the disposable income and any rise the solvent partner gets can be swallowed up by the IVA ---- potentially forcing the solvent partner to pay the others debts!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
He is thinking about cashing in his endowment to pay off his debts but if they will swallow the freed up funds its not worth it. His income would not change but his disposible income would. I know because he earns more than me he pays a bigger share of the bills than I however im not sure how his own expences were taken into account
Drop Karol a line, I am sure she will be able to explain. To be honest I have found GT to be very fair with most aspects of my IVA, so would be surprised if they gobbled up any significant amount.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks. Another significant thing is shortly his big loan of £360 a month ends, im wondering if we will then be that much better off or he will be expected to contribute that money to the household there by reducing my contribution and increasing that to my creditors. have no complains paying what i owe but i feel it unfair if he has to pay more because its my debt
ok so here is the reply....
I wish to advise although your IVA is a single IVA, both you and your husbands income are taken into account, which then allows all household expenses to be taken into account. An allowance has also been made within the expenditure for your husbands credit commitments. Should your husbands outgoing decrease, the overall household expenditure decreases and therefore the surplus income increases. As your payment is currently based on a joint income and joint expenses, should the income remain the same and expenses decrease then it is likely that the payment to your IVA will increase.
So there it is not good news and I do not think it is fair he would have to pay in more of his share as its my debt and I should still be able to contribute my share to the household expenditure surely? Well if this is reality I will tell him to keep his debt at its current level beause in effect he will be paying off my debt if he clears his own...
My personal opinion is that it is totally wrong. I had a discussion with a Payplan rep on another forum, quite some time ago, when a poster complained that hew new partner ( who had nothing to do with her debt, acquired before they met) , was expected to fund her repayments this way. This is one of the reasons I would never recommend Payplan.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I will be fighting the decision when it comes however for now im going to tell him not to repay his debts early and just keep paying the same amount out. His loan finishes in Jan 14' but I will tell him to up his replayments on his car or credit card to keep the outgoings up. Its a shame for him its not his debt yet hes not entitled to get a bit of extra spending power in his pocket
I don't agree with the response you have been given. Your partner's share of the disposable income is theirs to do what they will with, unless the terms of the IVA specify otherwise. Get this checked out again, and take it to a higher level if necessary.
