xmas saving's clubs

[mfne]

Just a quick question about a xmas saving club I pay into.
Would my IP expect 50% of the ammount I get back to be payed into my IVA.?

[Michael Peoples]

Under normal circumstances I do not see how it is relevant to your IVA. If you have saved money from your allowances that is your money to spend as you wish. However, as you have only just entered into your IVA this money should really be captured and is in effect savings from pre IVA and I believe your IP would want all of it.

Discuss it with your own IP but it sounds like a savings plan that should have been included as an asset in your IVA.

[mfne]

Thanks for the reply Michael,
Spoke to my IP and he said it wasn't included in my proposal but as my IVA only started in Sept this year I could keep all of it,
However I cant rejoin the savings club as he will take all of it next time and we will have to review my I&E in Jan as he cant let me keep all the monthly ammount I was putting into it this year.

[Skippy]

I don't understand why you're not allowed to rejoin - surely it's only a way of saving your allowances? Does your IP have a problem with you having a 'normal' savings account?

[Michael Peoples]

Not the view I would have taken but works well for you. I cannot understand why you are not allowed to pay into a Christmas club when you could put the money under your mattress and no one would know. Is the money deducted directly from your wages or is there an allowance made in your I&E?

If not I cannot see how your IP can take extra off you if you are being careful with your allowances. If however the money is being deducted at source this should have been noticed when your proposal was drafted and the money dealt with at that time.

[kallis3]

I'm surprised that you cannot carry on.

If you can fund this club from savings from your allowances, then you should continue to be a member.

We are allowed to make savings from them and overtime/bonus payments.

[Shining]

I find it odd too, I think that savings made from allowances are yours too keep, I try and put a penny or two away when possible.

[kallis3]

I suppose it depends upon how much you are putting away each month. If it is a fair amount, then I can understand why they would not want you to rejoin, but if you can lower the amount and put away savings from your allowances, then I would carry on.

[mfne]

Hi all,
sorry I should have explained, Yes the savings is taken from my wages and shows on my monthly pay slip,
I can save from my allowances if I wish to and keep all the savings, but my IP would keep it all if it came from my salary,
he also said as my income will increase by £50 per month from january we will have to re-asses my I&E.

[Michael Peoples]

This makes sense but personally I would have thought the IP should take the Christmas Club monies as they are effectively savings. This may sound Scroogelike but I do not see how it can be excluded. Lucky you that your IP is prepared to ignore it.

[kallis3]

Personally I would stop paying into the one at work and start saving in some other scheme. The Post Office do a scheme so you could save some of your allowances in that. They don't pay out until November.