www.iva.co.uk

Hi
I was wondering if you could clarify whether it is normal for an IP provided to ask for 50% of cost of living wage increases to have to go into the IVA as additional payments. I understood that these were ignored as they would need to cover the cost of living inreases in your outgoings.

Your IP may be right - but you can counter the argument by indicating what your current costs have gone up by and then (by agreement with him/her) agree to pay over any net increase.

Last year we informed our IP of our increases in both our salaries, my hubbies was a substantial one, and also showed our new I&E with the increased costs of living for food and fuel in the main - these were reported to them as and when they happened in writing throughout the year and when it got to annual review time, they wrote back saying no change to our payments !

It might be right in the context of what is written into the proposal, but that term or modification was always going to be unworkable because as you say it does not take account of increases in expenditure either.

A sensible IP will look at your income and expenditure as it is presented and decide with you whether an increase in payments can actually be effected without throwing you into hardship and placing the future of the IVA into jeopardy.

Many thanks for your replies. Our I & E shows a deficit between what we have in and what is paid out, including the payment into the IVA, which is why I wanted to check on the cost of living increases.

Then it looks as if a reduction is merited.

Hope you get it sorted Blossom.