www.iva.co.uk

Hi all, haven't been on for a while as all quiet on the Western front, now in month 4 of IVA and so far ok, just!
However, I wanted to ask about tomorrow's Budget. It has been widely trailed that the Government is planning to remove Child Tax Credit from all households with a combined income of more than £30k. I anm assuming that this will affect a great number of forum users, along with myself. Most people recieve around £40-00/month, which is taken into conasideration when calculating I and Es. If this is promptly removed, as a blanket decision out of everybody's hands, what wwill the effect be on IVAs? I know that IPs can make a variation of up to 15% without calling a meeting, but this £40-00 will represent over 15% to some people, and eat into , I suppose, a good percentage of this "allowable" 15% to most other people. Is it likely to be accepted by creditors that a lot of their debtors are suddenly going to £40-00/month out of pocket, with no say in the matter? Or is it going to mean a lot of people defaulting and failing their IVAs, again through no fault of thier own?

Just a thought,
Cheers,
Gabba

It will mean a fresh look at peoples I&E and possible alterations.
The budget will affect everyone in one way or another so im sure creditors will be sympathetic to this and allow changes to be made.

i too am worried, my tax credits have gone down by 4 pounds per month, which we are prepared to swallow as our creditors meeting is on Wed, heaven knows what will happen if they cancel it altogether

I am also concerned about this as I get £40 or nearly that amount per month and without it I know I'd struggle again....oh well I know I can contact Melanie when I know what's what tomorrow. x

Yes, we will have to wait and see but it isn't looking promising is it?
I would imagine there will be a lot of busier IPs in the next few weeks and a lot of creditors variations meetings too.
Fingers crossed if you are affected,
Gabba

Due to an overpayment last year we owe back over £600. This is being paid back by not giving us any money for the next 12 months. If as is being suggested the money is stopped will the money owed have to be paid back straight away.

I would doubt they'll stop it overnight, or I'd like to think they won't, they'll phase it out *fingers crossed* x

I can see the IP's being quite busy with reviews to income. However, i would not have thought that they would cut all the benefit in one go. The creditors will probably have to take lower payments in the end over the coming years, the tax credits will be lower or stop and as these are classed as income, then obviously there will be less for IVA's as disposable income against income.

Being public sector, I'm concerned with the cuts which are going to happen there.

I dont think they will just cut it or phase it out, but I think it will be stopped for those on higher incomes than 30k.
I read some weeks ago the talk were on cutting it from household incomes of 50K which sounds more realistic than 30k.
N to be honest 30K house hold income is not exactly a great wage before tax n it would effect far to many whom depend on its support.
Personally our income is way below 30K so Im not to concerned, but if Child Tax Credits (dont get tax credits) gets taken away all together, we are in big trouble.

Hope this helps on the matter n just released info on the budget:

"Outlining the cuts, Mr Osborne said child benefit would be frozen for three years and tax credits would be cut for families with incomes over £40,000 a year."

Thats good, i doubt whether they would reduce mine anymore as get the bare minimum anyway. On the whole from what I am hearing not a bad budget really what does everyone else think

I think the hardest thing for all of us is going to be 20% rise in VAT. I know that is going to hit us personally.
Freezing child benefit for 3 years does not sound to bad - as the yearly increase didnt make a difference anyway.
I dont know how people will feel whom come into the over 40K section - but 30k was way to low in my view.

As far as I can see, & correct me if I am wrong. The child tax credit is going to be scrapped for any family earning over £40,000.
The part I am struggling to find out about is when this will be applied from. I have seen on the BBC that it will start next year but i'm not sure. Could anyone please advise as I am sure a lot of peoples IVA will depaend on this. I owe back £500+ so it is a massive relief that it is not being scrapped for us.

hi, family allowance freeze ...mmmm it only went up £1.20 per month anyway so wont make a deal of difference. although its better with us n not them .