Hello - Change in IVA circumstances - help

wellard01

Hello All,

I am new to this forum so hello to you all.:money:

I have been told what a wonderful board this is and that the people who are on it who can give me honest advice, so if you could give me some please?

I had an IVA agreed in February 2010 and have paid all my payments on time. My wife is now a discharged bankrupt.

I am just about to have my yearly review however things have changed since my initial proposal.

When it was first agreed I was the sole director of a newcompany and the aim was to took a salary and dividend from my company which equates to 85% of the monthly income. My wife worked part-time elsewhere and would contribute the remaining contributed 15%,this left an amount for the IVA.

Since then the business has become quite busy, and due tothis my wife has now become an equal partner in the business (without her it would truly fail-). By doing so we now contribute 60/40 to the house hold bills. We do not own the house it is rented. This now leaves slightly more surplus from my income as required by the IVA, but this also leaves some surplus from my wife's income, which she has decided not to contribute to the IVA as she wants to use this for other purposes (i.e. pension, and our children as theyhave really suffered since the origins of all this). All her liabilities weredealt with in her bankruptcy.

However when the figure was seen by my IP they said she hadto contribute all of her surplus to the IVA, or we have to adjust the salary so I earned 70% and she took 30% in effect making more surplus on my side for the IVA. Can they make us do this?

Additionally as I am self employed I have to pay for certification every 2 years, which isn't something the business can pay. Again the IP said this would not be allowed. Without this certification I will be unable to work, so again can the IP make us do this?

Sometimes I feel like I might as well just go bankrupt, We have had no time off in the last 12 months.

Thank you for your help

FoggyBrain_2

In a word, yes. Technically they can do this, however it is, in my opinion, morally wrong !

Some (well, one that I know of) work out an insolvents DI based upon HOUSEHOLD income, thereby "forcing" the solvent household members to contribute to the insolvents debts!

Most other firms work out the DI using the insolvent's income alone, but factoring in a proportion of the household expenses being paid by the solvent partner in the same ratio as income. So, if the solvent earned twice as much they would pay proportionately more of the expenses, freeing a little more of the INSOLVENTS income for the INSOLVENTS IVA.

wellard01

Hello Foggy Brain, thank you. Looking through the IVA agreement it doesnt mention anything other, than 'my' current expenditure, and 'my' net income and 'my' ability to pay etc. It doesnt mention anything about my wifes (other than amounts in the cost breakdown) at all.

wellard01

Forgot to say, my wife is happy to contribute the same ratio to income, but not anymore.

FoggyBrain_2

I have "argued" this point on another forum with an IP from the company I refer to above, but, as expected, got no-where. The firm I refer to has changed a lot of it's policies recently and seem to be following a much harder line than before, causing a lot of grief to clients who have, up to now, been happy with the service. They have, as I said, been playing hardball and rolling out the "we can fail the IVA for non- co-operation" card --- I don't think it has been tested whether they will or not ..... who wants to take that chance with a clearly unhelpful IP ?