Help with expenditure review

safc247mick

Hi

I am new to the forum and hoping someone can help me with my problem.
I have now been in my IVA for just over two years and make my payments every month - initially they started off at £249 but have now risen to £323 due to a small increase in wage etc. When i first entered into the agreement i was living with family and had sufficient funds to afford my repayments.

However, i recently wrote to my IVA company explaining that my circumstances have changed. I now live with my girlfriend (whom i wasnt with when i entered into the agreement) and i know have a higher expenditure (council tax, water bills, electricity etc). I sent the company a new expenditure sheet outlining the details of any increase and stated the reasons why and I also voluntarily cut spending in certain areas to show I was willing to make other sacrifices in order to minimise a reduction in monthly payments.
However, according to my changes, I would only be able to afford around £190 a month which is below my original agreement. The company offered to do a review in order to help (I would say they have been very good so far) but they will only look at reducing my payments if I provide them with my girlfriends payslip and her outgoings. Is this right? As I find that a bit weird because she has nothing to do with my IVA as I didnt even know her back then. We have no official financial connection and we only co-habit. The company have insisted they are right to ask for this information as we live together - what if i was just flat sharing with a friend? would they still insist?

any advice or guidance would be greatly appreciated

Charco_2

It's quite normal.

They are not trying to include your girlfriend into your proposal.

If you simply lived with a flatmate, you would take care of your own finances but since you are living with your girlfriend there could be some overlap in your finances.

If you lived with a flatmate, you wouldn't pay more than your fair share (ie half) but living with your girlfriend you might not, you might pay for one thing and your girlfriend pays for another and if you're paying more than your fair share then that's not fair to your creditors!

Your IP is DEFINITELY going to have to get copies of the household bills that will need to be verified... but you might get away with not handing over copies of her wage slips.

Normally for a couple they like to work out who brings in what percantage of the household income (ie, if you earn £55 a month and your girlfriend earns £45, then you earn 55% of the household income and should pay 55% of the household bills - ridiculously simply figures)

However, you could simply insist to your IP that you and your partner split the bills 50/50 and you dont share finances like that.

In the end it might depend on who is the bigger earner, you or your girlf. If you earn more then it might be in your favour to share the bills on a percentage basis, if she earns more then you split 50/50. However you should also note that some items on your I&E won't be allowed in your IVA so your partner would have to pay for them on her own.

Whichever way you do it, NONE OF HER DISPOSABLE INCOME SHOULD GO TOWARDS YOUR IVA.

safc247mick

Than kyou very much for clearing things up for me. We both earn pretty much the same as each other and we do split everything 50/50....i will contact them again and see what happens. They have been good to me so far :-)

Than kyou again!