Change in income

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Hi,

My wife and I are currently still in the first year of our IVA. Our daughter was born 4 mths ago and while we informed CCCS of the birth, we didnt ask for a change in our monthly repayments.

I have to admit that it's getting increasingly hard to find enough money to live on as our daughter understandably is (literally) eating into our budgeting. We've just about managed to find enough money to get the nappies, food and clothes (she just keeps growing and growing lol) we need.

I got a small promotion at work around about the same time as the birth, but no pay rise. However, my company does it's bonus/raises in February of each year, so my next pay packet MIGHT be slightly increased (but knowing my company, not by much!)

My question is, if my income does increase slightly will I have to pay more into my IVA each month or can I ask for it to remain the same to counterbalance our increased costs to clothe and feed our daughter ?

Thanks in advance.

Comments

  • Charco_2
    Charco_2 Posts: 1,677 Forumite
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    It's going to require a new I&E - the point of the process is that you should pay back as mush as you can afford NO MORE AND NO LESS! So you need to accurately (ok guesses but as accurately as possible) indicate how much it is that you can afford... if that is less than you are currently paying then so be it.

    CCCS really should have discussed a new I&E with you when you informed them of the change in your circumstances - a baby is a huge change!

    So go back to them with your reviewed figures... the increase in wage can certainly be mitigated by the increase in your vital expenditures but if you don't organise it now then your supervisor is going to raise the issue with you when they see that you are earning more than you originally showed you were earning when the IVA started.

    Your allowances will certainly increase but it's up to you whether you take all of these allowances... you need to consider what your actual expenses are in relation to the allowances, you can sometimes argue successfully that your expences are more than the allowances (they are afterall only guidelines) but you need to keep an eye on the amount you are still going to be able to contribute and therefore the dividend at the end.

    If you are not generous enough to yourself in the allowances it is likely that your IVA will fail because it is too difficult for you to stick to. If you are too generous to yourself you might not have a reasonable dividend available for your creditors to accept.

    Obviously you'll want to increase all your allowable expenses to reduce your monthly contributions but just keep an eye to what is reasonable and affordable!
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • Kopite73
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    Thanks Charco.

    ** UPDATE ** - as well as a small raise, I have also amazingly got a bonus too ! Due to get paid next week so that will be the first increased wagepacket so I want to try and get ahead of things now.

    I will be contacting CCCS to ask for a new I&E to be done to take into account our increased spending because of our baby daughter.

    However, how much of my bonus am I allowed to keep before I have to split it with CCCS ? Obviously I'll be informing them of it too (it'll show on my payslip anyway so no point in even trying to hide it!)
  • FoggyBrain_2
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    Congratulations on both the baby and the bonus ! Under modern proposals bonuses are treated as the first 10% (compared to your normal take home pay) is risregarded ( so you keep that) and what's left is split 50/50 ( they get half, you keep half) --- HOWEVER, some proposals are amended by creditors back to an older "norm" whereby the whole bonus is split 50/50. All will be revealed in your copy of the proposal and Chairman's Report.
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