Confused with wages and IVA

purpleparrotuk

Ok so hubby has an iva approved with joint income of £3100 and expenditure of £2700 leaving £400 to go to his IVA. Included in the expenses were £300 to go towards my DMP

Anyway hubby has had his first wages from work today since his overtime stopped (The reason why we cant pay our debts now) and its about £160 more than was stated in the IVA. My wages were also about £100 out so in total our income now is actually £3400ish.

So we contacted the Case officer and they have said thats fine because it is less than 10% increase so no more needs to go to the IVA.

So my question is we now have around £260 extra that we did not think we would have. Can this be used how we want or does it have to go towards my debts?

I was going to save it and in a few months pay off 2 of my debts so I have only 2 creditors remaining.
Also the £300 I will be allocated includes my £250 car loan payment that ends in April. So after April we will have approx £600 left. Surely we will not be allowed to keep all this will we? Of course my idea is to pay off my creditors as quickly as possible but again don't know if this will be allowed because of my hubbys IVA.

Sorry if this is not very clear but I have tried to explain it as best I can

kns_2

How can you have joint income on a single persons IVA that is wrong.
His Iva should be on his wages only and your DMP yours only.
You need to ask your DMP people about your income.Is his income on your DMP if so why did you not both just have one or the other.

purpleparrotuk

kns wrote: »

How can you have joint income on a single persons IVA that is wrong.
His Iva should be on his wages only and your DMP yours only.
You need to ask your DMP people about your income.Is his income on your DMP if so why did you not both just have one or the other.

Hello

I think this is the way ivas work when you are married isn't it?

plummer_in_van

I thought anything you earned over your agreed monthly income would be split: Keep first 10% then split the rest 50/50?
As for the IVA, if you have a joint one then both are responsible for each others debts?

purpleparrotuk

plummer_in_van wrote: »

I thought anything you earned over your agreed monthly income would be split: Keep first 10% then split the rest 50/50?
As for the IVA, if you have a joint one then both are responsible for each others debts?

That's right plumber. But that applies to the person in the iva. I am not in the Iva

jamesd

I don't think it's possible to say at the moment. What happens in the original IVA plan in April when your car payments stop? Is the IVA payment supposed to increase? What about the percentage of the original debt to be repaid by the IVA?

If the percentage of his original debts to be repaid stays the same, then an increase in payment would mean the IVA would be done with sooner, so it might be worth doing even if the payment increases.

purpleparrotuk

jamesd wrote: »

I don't think it's possible to say at the moment. What happens in the original IVA plan in April when your car payments stop? Is the IVA payment supposed to increase? What about the percentage of the original debt to be repaid by the IVA?

If the percentage of his original debts to be repaid stays the same, then an increase in payment would mean the IVA would be done with sooner, so it might be worth doing even if the payment increases.

Hello. We are paying back 39p in the pound. According to the proposal the payment stays the same throughout with the equity clause at the end. Nothing is mentioned about my car payment. Don't forget though it is my car payment and not hubbys and it is hubby who is in the iva

Charco_2

It all does make sense!

The reason her wgaes are mentioned on hubby's IVA is to make sure that he is paying his fair share of house hold bills (no more and no less) and that the surplus he has left to pay towards his IVA is his own money and not yours.

I think you'll be free to use the car payments to reduce your own debts and it's not a bad idea to use as much as you can afford from the surplus to reduce the debts in the meantime.

Your husband's IP will likely do an annual review next year and this surplus will be picked up so it wont last forever... this time it has come down in your favour! Make sure you are getting the most out of your monthly allowances in your I&E.

(the percentage you agree to pay back through the IVA is not set in stone... if you pay back more it will not end your IVA quicker.)

jamesd

Yes, it should work that way but I'd want to check with the IVA case officer to be certain before doing it. Beats bad news later!

purpleparrotuk

Checked with the officer. All is well :-)

jamesd

Great! Glad you are getting at least a little good news.