iva breach of contract

booyacka82

I've been in an iva for 4 years and paid every month. During this time my income has increased quite a few times. My income is about 50% more now than when i started. I have not sent in any wage slips or anything for 3 and half years. I have been asked a few times but I missed the date to send them and they seemed just like warnings. I have not saved any money in this time. I have now been sent another letter which seems more threatening asking for the wage slips and a change of expenditure if aplicable. I have all the wage slips and would like to get this sorted. I am worried that I have breached my contract and will get in a lot of trouble. Does anyone know whats likely to happen when i get in contact with them and they see the income change?

UpToMyNeckInIt

Unlikely you will get into trouble, but you can expect an uplift in iva repayments. If your iva company back date to any degree, based on what I have read elsewhere and what company you are with, you can either catch up via additional payments tacked onto the end if your iva; or Increase your Monthly repayment.

Normally you are allowed to keep 50% of any net increase in income, so be sure to properly review your expenditure allowances, as these will have gone up as well. This should minimise any uplift in payments.

Let us know how you get on.

Good luck.

Foxy-Stoat_3

Expect to pay 50% of anything you earned over your stated income when you took out the IVA and at annual review times.

Not going to ask why you didn't send in wage slips when asked or why you hadn't put money aside as you would of known that you would have to if you received pay rises and or bonuses.

You will either have to pay the shortfall or extend the IVA to cover it, best speak to them now and give them all payslips or they will not be able to complete your IVA after month 60 or 72 depending how long your agreement is for.