www.iva.co.uk

I just started an IVA, and it's worked out based on my 12 months salary but some years will be 13 months will i still have to pay for the extra month.

You should make 60 calender monthly payments so this should not be an issue.

If I understand you correctly, your IVA is a fixed monthly payment, but you are paid every 4 weeks?

If this is the case then you should discuss your payment schedule with your Insolvency Practitioner. Depending on how many months arrears you are allowed in your Proposal, your Supervisor may let you make a set payment every 4 weeks to make things simple.

Hi,

I would not have thought so, but best run it by your IP to be on the safe side. I take it you are paid lunar monthly and they are aware of this?

Hubby gets paid every two weeks but our IVA has been worked out on a monthly basis. This was done by multiplying his pay by 26 and then dividing by 12. Not ideal but it is what they wanted.

Right, got you now.

If your IP is aware of this, and your payments have calculated over the twelve months, then you should be ok to keep the extra.

I would liken it to the council tax and water rates free months. Your payments are calculated over twelve months so the free months are yours to do with as you will.

Hopefully one of the experts will be along later with advice.

IPs should be flexible to collect payments at a rate that suits their clients. I have a number of clients who are paid four-weekly and who make 13 smaller payments each year to coincide with when they get paid. I also have clients who make two payments per month and a few who pay weekly. It makes no difference to me - so long as they all pay!