www.iva.co.uk

Hi all,

I am in a joint IVA with my wife, she only works regular hours 5 -6 hours pw at the moment at a school but having just qualifed as a Teaching Assistant there is a possibility she will get a new post in September and be earning around 4 x more than at present.

Obviously we would declare the change if happens - and would expect to pay more in, but would the full pay increase be taken as I can envisage that the monthly payment could actually exceed what we were paying per month in repayments to our creditors before the IVA!(and also bearing in mind Tax Credits would decrease accordingly).

Thanks.

You may find any increase, is offset against tax credit loss and increased child care or any other work expense (ie petrol etc)

Oh and welcome to the forum Chris !

Hi Chris,

You will obviously have to do a new I&E to take this into account but of course expenses will have gone up as well so I doubt they would take all of it.

The one good thing that might come out of this is that you might be able to pay back your creditors in full and might be able to do it early.

Hope your wife gets the job.

Hi Chris - congratulations to your Wife & the qualification & job, wonderful news!

All that will need to be done is a fresh Income & Expenditure once you know what your Wife's new income is going to be & when you have contacted Tax Credits & got your new award notice.
You may find you need some new areas of expenditure to be introduced due to your wifes' new employment/working hours, ex: allowances for lunches, work uniform, traveling to & from, childrens school dinner money (saves time in the morning) etc.
You will always owe the full amount of your debts & fees till then end of your IVA, but it would be nice if your Wife could also benefit from her payrise, run it past your IP.

Thank you all, sound advice there, yes it would be nice if there could be some benefit from the rise ultimately!

You should only have to pay over 50% of increased earnings - net of increased expenditure - but it will depend upon the terms of your actual IVA.