www.iva.co.uk

Having just received and completed my annual review, I was informed that my pension contributions, that are taken at source, cannot be included in my monthly expenditure. I was also informed that I cannot make any allowance for the money that I spend on my daughter, who, although we are seperated, lives equally with myself and her mother, but as her mother receives the child benefit she is also considered to have legal custody. I make maintenance payments to my daughters mother but these do not cover all of my daughters needs, as we agreed between ourselves that I would still provide as necessary. I would rather increase the maintenance payments that I make to be a true reflection of what is really required, therfore:

How much is allowed to be made as child maintenance payment?

I also have varying fuel expenditure and again would like to know how much is allowed for fuel costs per month?

Kind regards,

Steve

Hi Steve
Your expenses should not be dictated to you by your IVA provider.List all fair and reasonable expenses and a fair average of your petrol costs.Remember what money is left is classed as your disposible income and ALL of it has to be paid into your IVA so you will have no spare cash
Have a look at other providers if you are not happy with your proposed one.
Regards[also an E30 fan]

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

Hi Steve and Welcome to the Forum,

In regards to your pension payment I believe that because your pension is taken directly at source to add it to your expenditure would be listing it as an expense twice. The income used for your IVA calculation should have been nett hence your pension payment would have already been taken into consideration.

As your child stays equally with you and her mother I dont see why your I.P believes this is not justified. There isn't really a specific amount that is allowed for child maintenance it should just be allowed whatever is paid.

For the cases that I see petrol expenses over £100p/m would need to be justified by mileage, so if you are doing the miles and can prove this I wouldve thought this was ok.

Best Regards. IVA Experts

Thank you for the replies.

Regarding my pension payments, as I said they are taken at source and as a consequence of this I didn't even include them as an expense. My expenses are deducted from my nett income, from which my pension contributions have already been taken, leaving me with my disposible income. When I sent my expenses and wage slips for annual review assessment, the IVA company then added the amount that I pay in pension contributions to my disposible income and proposed an increase in my monthly IVA payment. When I questioned this I was told that, as the pension is a benefit for myself and is not a compulsory scheme that it cannot be included as an expense.

Kind regards,

Steve.

Work pensions can be a bit of a lottery in an IVA and creditors will sometimes demand that these are frozen until the IVA is completed.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Child Maintenance payments should be no more than the CSA current rates - ie 15% of net salary for one child, 20% for two and 25% for three or more.

It is odd that your IP is now saying that you cannot have pension contributions. Were you paying these when you entered into the IVA, or have you only recently taken out the pension.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Steve
If your IP company simply add the amount that you currently pay into your pension scheme onto your disposible income then it will be wrong,simply because you pay no tax on the pension contribution at present and if you have to cancel this pension the amount that you were paying will be taxed,resulting in less net pay and hence disposible income..You need to raise this with your IP
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