After Iva's,you have a 'chunk' of money saved,do you have to show where it get spent?

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Galeeno
Galeeno Posts: 295 Forumite
edited 5 July 2013 at 4:35AM in IVA & DRO
After your IVA has been sorted, and you are paying reduced payments (from a high amount, to a low amount),

you will not be outputting any more money to the huge monthly debt.

so this money you will NOT be using for debt will be used towards food, leisure, transport etc.

- in the period years 1-5 of the IVA, do you have to prove (at regular intervals) that you are using this money on them things? (in the 5 year period)-

When I mean regular intervals, i mean monthly/yearly ?

yes/no? if yes how are you expected to prove it ?


[FONT=Verdana, Arial, Helvetica]so I am asking if their situation
has

a) Changed - do they have to show proof/bank statements/ receipts etc?

OR

b)if the situation HASN'T changed - do they STILL have to show that their situation is the same?
by showing their bank statements? (that the bank statements/expenditure is the same as at the start when the IVA was set up?)..


as can't some people just use this extra money that DOESN't get paid towards the old debt...for additional things? (without the IP knowing)....in say the 3rd year of the IVA ?

that is why i am asking, are bank statements etc, required to be shown every year ?
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Comments

  • memberme
    memberme Posts: 213 Forumite
    Debt-free and Proud!
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    Hi,

    your IVA payment calculation will be worked out not counting any of your debt payments which of course you won't be making so there won't be a huge amount spare. there can be whilst it is being processed and that is yours. You will have yearly assessment where you will fill in a new expense form and have to provide proof of any increase. you will also have to submit a copy of at least one months recent bank statements, a wage slip and your p60 for that year.
  • milliemonster
    milliemonster Posts: 3,708 Forumite
    I've been Money Tipped! Chutzpah Haggler
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    Depends who you are with, my IP does not require to see my bank statements at all and I would not be with one who is as I see this as a huge invasion of privacy.

    They do a review annually and want to see all your payslips, P60 and evidence of any changes to your expenditure (they don't need to see evidence of things that haven't changed over the previous year.)
    Aug GC £63.23/£200, Total Savings £0
  • milliemonster
    milliemonster Posts: 3,708 Forumite
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    You won't have any extra money anyway, they will see from your income (from your payslips/P60) what you are earning and will see from your expenditure what you are spending so whatever then is left over will go into your IVA, so if you have a pay increase that outstrips your expenditure increase you will have to pay 50% of that extra income into your IVA (you get to keep 50% of any increase in pay yourself
    Aug GC £63.23/£200, Total Savings £0
  • RuthnJasper
    RuthnJasper Posts: 4,032 Forumite
    Photogenic First Post First Anniversary Combo Breaker
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    With my IVA, I have an "annual review" - for that, I have to send my bank statements and payslips for the previous three months and any evidence if your circumstances have changed by more than £10 per month (e.g. if your water bill had gone up by £13 a month, you'd have to send copies of the bills for before and after the change - the same would apply if your monthly byll had gone down by £13 a month).

    Forgive me if I'm wrong, but the title of your thread suggests that you are trying to 'hide' some money from an IVA provider. That is against the principle of an IVA and unfair to your creditors; plus, if they DO find out about it they will not be happy. Think carefully before trying to conceal things from them.

    Best wishes. x
  • Galeeno
    Galeeno Posts: 295 Forumite
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    You won't have any extra money anyway, they will see from your income (from your payslips/P60) what you are earning and will see from your expenditure what you are spending so whatever then is left over will go into your IVA, so if you have a pay increase that outstrips your expenditure increase you will have to pay 50% of that extra income into your IVA (you get to keep 50% of any increase in pay yourself

    the expenditure you use in the 5 years, do you have to show proof of these within the 5 years? or throughout the 5 years?

    if so, how do they require proof?/ every month ?
  • debtfree2016
    debtfree2016 Posts: 325 Forumite
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    Hello Galeeno
    I have been in my IVA for 2 years now, never needed to send proof unless the cost of the bill was greater than the allowance given in your proposal. Hope this helps,

    I've mentioned on other treads I draw all of the funds from my account and leave only the amount to cover all DD, SOA otherwise I purchase everything with cash.. Fuel, Shopping etc.
    Never make assumptions always ask questions>>>>>;)
  • milliemonster
    milliemonster Posts: 3,708 Forumite
    I've been Money Tipped! Chutzpah Haggler
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    Galeeno wrote: »
    the expenditure you use in the 5 years, do you have to show proof of these within the 5 years? or throughout the 5 years?

    if so, how do they require proof?/ every month ?

    throughout/within? they mean the same thing????

    No you don't have to show fluctuations month by month, although having said that, if you have a large increase or decrease in a particular expenditure i would let them know when it happened.

    Your best bet with all these questions you have is to speak to a couple of IVA companies, they will be able to advise you about specifics.
    Aug GC £63.23/£200, Total Savings £0
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