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lower rent should i tell my IVA company?

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hi guys,
i am in an IVA currently paying 190 a month. I am thinking about moving out of my flat into somewhere cheaper. Firstly do i need to tell my IVA company about this and if so does anyone know if my IVA contributions would increase, and but how much?
many thanks for the advice,
dan

Comments

  • FoggyBrain_2
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    Hi Dan. You should keep your IP nformed of any such changes. Many IP's will only take account of these things at the annual review, others will take the difference into the IVA payment right away. Basically, if your disposable income increases, so does your payment into the IVA, by the same amount (unless it can be offset by increases in expenditure).
  • danp100
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    thanks for the reply,
    I am pretty sure i can earn an additional 100 a month without an increase in my iva payments, and therefore you would think this would work the same if you have some additional disposable income? I believe after that extra 100 a month I should then be paying 50% extra. So if i have 200 extra i should be paying another 50 into my iva? please let me know if i understand this correctly?
    cheers
    dan
  • FoggyBrain_2
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    I stand to be corrected but the 10% "disregard" only applies to overtime or bonus payments, not to other increases in DI. You'd have to check your proposal. I don't have the 10% allowance, just 50/50 split, so don't know how it's worded. On the premise that I am correct then those figures you quote would be correct if the extra comes from O/T or Bonus payments.

    I am sure "someone wot knows" will be along to put me straight.
  • debtinfo
    debtinfo Posts: 7,012 Forumite
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    I think there is an added unforseen benefit here, one of the problems with IVA's sometimes is that there is the possibility that your circumstances could change to the point where you cannot make a payment that would be agreed by creditors, if you pay more than the original agreement now it may come in usefull in negotiating a conclusion if you have problems down the line
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
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