Do I Declare Maternity Payment After IVA Approved?

getdebtfree

Hi guys

As you might know, my creditors meeting is today.

Our payments to the creditors was worked out on my pay and tax credits. We have three children with one on the way in March.

Our income left for luxurys and kids clubs, holidays, christmas and birthdays is limited.

Now this morning my wife received notice that she will start getting maternity payments for nine months.

Will I have to instantly declare this payment to my IP? if so how much will I have to pay out of this towards my IVA?

It would be nice to get this money as we was not expecting it, we can buy things for the baby and build up our housekeeping pot.

Cheers guys

techno1029

Although some will disagree I am of the opinion that the IVA is in your name and yours alone. If it was a joint one then that would be different but what your wife earns over and above what her normal contributions are to the household should be hers to do what she wants to do with and not go to pay your IVA. I know you will probably have gotten into your situation together but if the IVA has been set up for you then that should be just it. Somebody posted previous about his wifes earnings increasing and should she pay more into IVA???? My opinion is if IE has been set why should wife earning more alter this?? Especially if she does not contribute anymore to the IE???? Could be just me with a bee in my bonnet???? haha...Good Luck.

FiatFan_2

The way I understand techno's post, I agree with them. If it's your iva then your wife's additional income shouldn't matter. However, I don't know much about single iva's, has your wife's income been taken into account and is the income threshold based on single or joint wage?

If it's a joint one like ours, then it'd be subject to the usual rules. We received a additional child play scheme payment from the wife's employer the other month, thankfully even with the extra we were below the threshold and got to keep the full amount.

HTH

getdebtfree

Sorry guys forgot to say its joint iva.

Although wifes name had to be added even
Though she only shared one debt.

She is currently unemployed.

I read that you had to pay ten percent somewhere. I'm
Just really unsure about this part.

Cheers

techno1029

Haha...Sorry, forget my rantings then...if its joint then you should declare any changes in IE...its always for the best!!
My opinion is really based on the fact that the wifes income is taken into account then so should 'all' of her outgoings too which then more or less puts her in the IVA without her being in it???? if you know what I am getting at!!!! lol ( Mine was a single one)

RuthnJasper

It's best to declare it - it won't look good if the IVA people find out about it through other means. I'm sure they won't be mad with you or your arrangement, but it is better to be open and upfront...

Good luck with everything - hope it all works out for you and your family. x

lawstudent

getdebtfree wrote: »

We have three children with one on the way in March.

Don't mean to offend you but it seems very irresponsible to me to have another child when you already have three that you couldn't afford to keep and pay your debts.

getdebtfree

lawstudent wrote: »

Don't mean to offend you but it seems very irresponsible to me to have another child when you already have three that you couldn't afford to keep and pay your debts.

Yes actually I do find that VERY offensive.

We were in control of our debts and had plans to expand our income. Infact we were just two years away from paying our loan and was then to concentrate on our credit cards.

We planned our baby three years ago but had difficulties. When my wife fell pregnant we was fine with money and had planned everything out.

My wife was three months pregnant when our circumstances changed, and we spent a few months living on our cards hoping things would change but of course it didnt. So that gave us no choice but to seek help.

Actually I have spent 15 years getting using credit and always paid off my debts.

Yes so kindly stay away from my thread if you have nothing constructive to say about my given subject.

Everyone else on here has been great.

Thanks guys

FiatFan_2

What an irritating comment, employment circumstances can change that quickly nowadays that even the best preparation can't prevent people from needing financial assistance.

My opinion would be that if the maternity payment is in addition to any benefits she may already be receiving for being unemployed then it'll just be regarded as additional income and subject to additional income rules. When your iva is approved, you'll get a welcome pack which will have a paragraph stating home much income you can keep per month, anything greater than this 50% will go to your IP.

For example, if your joint income was £1000 you could earn upto £1100 without declaring it. If one month you earned £1200 then £50 extra would be paid on top of your usual DD payment.

Additional payment rules will be far easier to administer than having to go through a variation where you could end up worse off and they'll not want the additional administration of it.

getdebtfree

FiatFan wrote: »

What an irritating comment, employment circumstances can change that quickly nowadays that even the best preparation can't prevent people from needing financial assistance.

My opinion would be that if the maternity payment is in addition to any benefits she may already be receiving for being unemployed then it'll just be regarded as additional income and subject to additional income rules. When your iva is approved, you'll get a welcome pack which will have a paragraph stating home much income you can keep per month, anything greater than this 50% will go to your IP.

For example, if your joint income was £1000 you could earn upto £1100 without declaring it. If one month you earned £1200 then £50 extra would be paid on top of your usual DD payment.

Additional payment rules will be far easier to administer than having to go through a variation where you could end up worse off and they'll not want the additional administration of it.

Yes very unwanted and not needed comment from mr lawstudent.

Hey thanks for your help, im sure we will work it out.

IVA company phoned. IVA not approved as of yet worrying.