www.iva.co.uk

My girlfriend is currently in the middle of an IVA and is just coming up to her first annual review.

At the moment she is panicing that they will realise she has had some money over and will send her a bill for the year.

Earlier in the year, just after she started, she had a slight pay increase and did advise the company, but they told her not to worry until the review. I'm sure it was also mentioned that they wouldn't re-claim any money, just maybe adjust the following year.

Can anyone advise on this please?

From what has been said by others on this subject in this forum,there is no definitive answer and depends on your IVA terms. It is best to look at the proposal and the mod' to see what it says -Is the payrise classfied as O/T, Commission or bonus or just inflationary??

If the pay rise is a small inflationary thing - when the review comes, you may be allowed to keep it depending on the the IP's view. In my IVA terms it says 50% of extra income can go to IP but if the amount is around £500 it could be waived as it is uneconomical to distribute. But that is for my case.

If expenditures by the end of year 1 since the IVA started have crept up,you could use that to justify to keep some or all of the extra money.

You may even be asked to backdate the extra pay if you have to hand some or all of it over. Some IP insist and some don't.

Check the IVA documentation as it should talk about what happens to extra income of what ever source.

"Always think outside the box"

Ok thank you. Well the extra money is down to change of job and increase in basic salary. The company was told about it but they told her not to worry until the review. Going by their workings, she has about £30 a month more than they say.

They've asked for her last 3 month statements and payslips so they will see that it's not as though she is stashing this away and hiding it and was trying to comfort her last night by saying that £30/month isn't a lot and can't see them giving her a huge bill. After all, if they do, again they can see her bank balance and realise she won't have the money to pay for it.

A letter has been written to them as she is having to move in with me and therefore the majority of the increase in pay will now go towards rent and food and bills. Hopefully this will be ok and of course I guess you have to take into account inflation.

Sure she will be ok, she's just nervous and stressed as this is the first review and unsure as to what to expect.

I agree with Skipper - it seems to vary between IPs / IVA Providers. I had a pay-rise "mid-year" and my monthly payment went up straight away. I had had no real expenditure increases so I was just allowed to keep a small "inflation" increase. No complaint about that. But I have read on the forum where people are allowed to keep an increase until a new I+E is considered at the Annual Review.

Inflation is 4.5% above retail price index. No reason why the IP shouldn't allow her to keep the £30 per month.

I travel to work by train,we have heard about the ridiclous price rises, I will definately use that at my review to keep all the inflation increase when the time comes.

"Always think outside the box"

Your partner's IP will only take additional money from her, if she can afford it. If her payrise is only £30 per month (after tax) it is quite likely that she will have increased expenditure to match this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi
If the IVA company said not to worry until the review then they will not ask for it to be back dated,which I think is your main concern.
Your girlfriend will fill in a new income and expenditure form at her review and the increased income will be reduced by increased expenditure and any surplus will then be added to the current IVA payments
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Excellent, I hope this is this case. Thank you all for your reponses.

It was kind of my fault that she is the IVA as she was understandably embarrassed to tell me about the situation and was burying her head.

Since starting this, it has improved her life including health without having so much of a worry. Just hates having to watch every penny, but then I just keep getting her to focus on her relief in 4 years time