Posted: Thu Aug 07, 2008 3:11 pm
I recently posted regarding whether or not my husband's surplus income should still be included when working out my monthly payment even though he completed his IVA early. Melanie kindly responded saying that it shouldn't and that my payment should have been re-calculated to take this into account. I have sent back my annual review documentation along with a covering letter asking for this to be looked at and am currently awaiting a response (really stressful time at the moment). In the meantime, I wanted to give a bit more background to our situation.
When I was initially thinking about setting up an IVA, I thought that this would be something that I could do on my own as the majority of the debt was before we got together. However, when I looked into the ins and outs of an IVA I was advised that because we had a taken out a personal loan and had a current account (with overdraft) in joint names he would need to take one out as well otherwise the company we had the personal loan with would continue to pursue him for the monthly payment (he could have afforded to pay to the overdraft and his credit card but not the personal loan).
My proposal includes:
Halifax Personal Loan = £12,259.18 (joint names)
Halifax Overdraft = £100 (joint names)
Halifax Credit Card = £14,650.15
Capital One Credit Card = £6,290.12
Cahoot Loan = £8,820.56
Credit Card = £2,047.18
Store Card = £126.47
Husband's proposal included:
Halifax Personal Loan = £12,259.18 (joint names)
Halifax Overdraft = £100 (joint names)
Capital One Credit Card = £200
I had car finance with GE Capital for £8627. This was not included in my IVA as it was finance (supposedly) so I continued to pay separately.
Total unsecured debt for me was £44,293.66 and for husband was £12,559.18. It states on the bottom of both proposals which 2 debts are jointly held (Halifax Personal Loan & Halifax Overdraft). Once fees had been added my payment came back at £362.05 for 60 months (0.31p in £) and my husband's at £175 for 60 months (0.38p in £) giving the 2 joint creditors a payment of 0.69 in the £. The first payment for both of us was August 2006.
It was brought to light in May 2007 that the car finance should have been included in my IVA as it was unsecured and I was instructed, by letter, to increase my monthly payment by the said amount (£235) therefore making my monthly payment £597 for the remaining 51 months. Even though the finance would have been paid off before the end of the IVA I didn't have a problem with this because it would mean the remaining creditors getting more money back, although I didn't understand why my payment was increased by the full amount. Shouldn't this have gone back to the creditors with a revised proposal (pence in £)?
My husband settled his IVA in July 2007 through a gift from his mother paying £6925 in total (final documents received in December).
From reading various threads on this Forum about people's situations I started to think about my own. I continued to pay my monthly payment at the said amount (£597) which is both incomes added together minus expenditure. You will also see in a previous thread that I asked Melanie what proportion of the monthly expenditure I would be expected to pay. Melanie suggested that it should be 42%. Our monthly income is £2546 (£1087 me & £1459 husband) and our expenditure is £1775 - this is taken from the i&e sheet and already has contingency, dental etc included. This also includes child maintenance for my husband's son. Should I take this off when working out my expenditure? I work 42% of the total monthly expenditure to be £745.50 (or £698.80 if you don't include child maintenance) which if you take this off of my income it would leave a surplus of £341.50 (or £388.20) available for my IVA.
I understand and have no problems what-so-ever in re-paying my creditors back as much as possible I just don’t understand why all of husband's surplus income is still included. It seems that ending his IVA early has been a complete waste of time! He still has no spare money left and we are finding this very difficult to resolve. This has been an underlying issue between us since he ended his IVA early and I see that the problem is only going to get bigger if not resolved. We only got married in May of this year - Registry Office Ceremony then a few drinks with family and friends (simple but really nice). Both families paid for our honeymoon as a wedding present which was really good of them! I don't want this to come between us but can see it's only going to get worse. At the moment he is working all hours to build up enough money to take his son on holiday with the rest of his family which I feel really guilty about (he works permanent nights as it is so he is absolutely shattered). If it wasn't for me he wouldn't be in this situation.
Hopefully this will be resolved during my annual review.
Thanks for listening!
When I was initially thinking about setting up an IVA, I thought that this would be something that I could do on my own as the majority of the debt was before we got together. However, when I looked into the ins and outs of an IVA I was advised that because we had a taken out a personal loan and had a current account (with overdraft) in joint names he would need to take one out as well otherwise the company we had the personal loan with would continue to pursue him for the monthly payment (he could have afforded to pay to the overdraft and his credit card but not the personal loan).
My proposal includes:
Halifax Personal Loan = £12,259.18 (joint names)
Halifax Overdraft = £100 (joint names)
Halifax Credit Card = £14,650.15
Capital One Credit Card = £6,290.12
Cahoot Loan = £8,820.56
Credit Card = £2,047.18
Store Card = £126.47
Husband's proposal included:
Halifax Personal Loan = £12,259.18 (joint names)
Halifax Overdraft = £100 (joint names)
Capital One Credit Card = £200
I had car finance with GE Capital for £8627. This was not included in my IVA as it was finance (supposedly) so I continued to pay separately.
Total unsecured debt for me was £44,293.66 and for husband was £12,559.18. It states on the bottom of both proposals which 2 debts are jointly held (Halifax Personal Loan & Halifax Overdraft). Once fees had been added my payment came back at £362.05 for 60 months (0.31p in £) and my husband's at £175 for 60 months (0.38p in £) giving the 2 joint creditors a payment of 0.69 in the £. The first payment for both of us was August 2006.
It was brought to light in May 2007 that the car finance should have been included in my IVA as it was unsecured and I was instructed, by letter, to increase my monthly payment by the said amount (£235) therefore making my monthly payment £597 for the remaining 51 months. Even though the finance would have been paid off before the end of the IVA I didn't have a problem with this because it would mean the remaining creditors getting more money back, although I didn't understand why my payment was increased by the full amount. Shouldn't this have gone back to the creditors with a revised proposal (pence in £)?
My husband settled his IVA in July 2007 through a gift from his mother paying £6925 in total (final documents received in December).
From reading various threads on this Forum about people's situations I started to think about my own. I continued to pay my monthly payment at the said amount (£597) which is both incomes added together minus expenditure. You will also see in a previous thread that I asked Melanie what proportion of the monthly expenditure I would be expected to pay. Melanie suggested that it should be 42%. Our monthly income is £2546 (£1087 me & £1459 husband) and our expenditure is £1775 - this is taken from the i&e sheet and already has contingency, dental etc included. This also includes child maintenance for my husband's son. Should I take this off when working out my expenditure? I work 42% of the total monthly expenditure to be £745.50 (or £698.80 if you don't include child maintenance) which if you take this off of my income it would leave a surplus of £341.50 (or £388.20) available for my IVA.
I understand and have no problems what-so-ever in re-paying my creditors back as much as possible I just don’t understand why all of husband's surplus income is still included. It seems that ending his IVA early has been a complete waste of time! He still has no spare money left and we are finding this very difficult to resolve. This has been an underlying issue between us since he ended his IVA early and I see that the problem is only going to get bigger if not resolved. We only got married in May of this year - Registry Office Ceremony then a few drinks with family and friends (simple but really nice). Both families paid for our honeymoon as a wedding present which was really good of them! I don't want this to come between us but can see it's only going to get worse. At the moment he is working all hours to build up enough money to take his son on holiday with the rest of his family which I feel really guilty about (he works permanent nights as it is so he is absolutely shattered). If it wasn't for me he wouldn't be in this situation.
Hopefully this will be resolved during my annual review.
Thanks for listening!