We are looking to starting an IVA with Stepchange. My wife may get a promotion.

[grez1979]

Myself and my wife are looking to start a IVA early in 2018, we are currently at the drafting stage with Step Change.

My wife may get a promotion in the new year and may get a net monthly increase of around £200. After speaking with Step change they say if this happens we will keep 50% while 50% goes to our creditors.

My question is, Once we have had our 1st annual review and if our expenditure doesn't change to much, would we then pay our creditors the full amount my wife as received in her pay rise?

Thanks

[Foggy]

No --- permanent pay rises are taken into account at the review following the rise and 50% of the extra pay will be added to the IVA payment from the month after the review -- the other 50% is yours to keep. So it won't all be eaten up by the IVA and you will see some benefit yourselves.

[grez1979]

Thank you for your reply, and also you do a great job on the forum.

I was so down before deciding to go down the IVA path, but after reading this forum night after night I feel there may be light at the end of the tunnel.

Thanks again.

[kallis3]

Foggy is right - they cannot take anymore than 50% off you.

[grez1979]

Okay, thanks for the info guys.

Nice to know that we will see a increase in our income which will help us out greatly.

[Shaun Vickery]

Foggy/Kallis3 Is this the case even if the IVA hasn't yet been approved by creditors. If the pay-rise has happened before approval is it still only 50%?

[Foggy]

Foggy/Kallis3 Is this the case even if the IVA hasn't yet been approved by creditors. If the pay-rise has happened before approval is it still only 50%?

Hi Shaun. No .. if the pay rise happens before the creditors meeting it should result in a recalculation before the IVA is accepted and the payment based on the new ingoing income.

[Shaun Vickery]

Thanks Foggy, that's what I suspected, it may be significant in this case.

[grez1979]

Thanks Foggy, that's what I suspected, it may be significant in this case.

I sent all the signed documents today so hoping the creditors meeting will be in January and the pay rise will come into affect in February.

If that’s the case, would it be 50%?

Thanks

[kallis3]

Should be as far as I am aware.

If that is the case, you may find you can keep it all until your next review as some companies do that.