IVA - Annual Review

isey235

Hi

I have received the paperwork for my annual review.

Looking at my income and expenditure the only thing that has really changed is our mortgage payments. I now pay about £70 less towards the mortgage due to our 5 year fixed rate mortgage deal finishing and now being on the banks standard variable rate. I am concerned that my monthly payments to my IVA will increase because of this even though I feel even worse off each month. I really can't afford to pay any more each month.

I take it I need to disclose this information on my income and expenditure ? Anybody experienced similar circumstances ?

Any advice would be greatly appreciated.

Thanks

Foxy-Stoat_3

Yes you have to disclose all your out goings. Your monthly budget should take into account all bills so you should be able to make ends meet, unless you do not stick to your budget.

I am sure you can increase a few other bills compensate the lower mortgage payment.

isey235

Foxy-Stoat wrote: »

Yes you have to disclose all your out goings. Your monthly budget should take into account all bills so you should be able to make ends meet, unless you do not stick to your budget.

I am sure you can increase a few other bills compensate the lower mortgage payment.

Thanks for your reply.

After working out my income/expenditure I'm a little concerned. Our childcare costs have decreased and whilst some bills have increased I'm worried that my monthly payments will increase.

If I were to leave the childcare costs as the original figure (or slightly less) would my IP be likely to ask for proof ?

Foxy-Stoat_3

IVA's are based on trust, so you can put down what you like but if you have made a massive inflation of costs, your IP may ask some questions if it ever came to light. I didn't ask to send proof of any of my out-goings and I was truthful about everything.

You should be able to pay all your bills, buy enough food and petrol and be left with pretty much nothing at the end of the month.....if your figures are true and correct, you should be able to survive, unless theres something that your paying for that isn't on your budget, or you cannot stick to your monthly budget.

UpToMyNeckInIt

I agree with Foxy's advice.

But if your net increase in income is only c£100 pcm, you may find that your iva repayment does not increase at all.

It all depends on your iva terms: many allow your income to increase by as much as 10%, before applying any increase, others may ask for 50% of any net increase.

Sometimes however, the clauses relating to income only apply to bonuses/ overtime etc. So if you had a big net increase, some iva firms may require a full review.

So dig out your paperwork, and clarify with your case worker.

Let us know how it goes.

Good luck.

isey235

UpToMyNeckInIt wrote: »

I agree with Foxy's advice.

But if your net increase in income is only c£100 pcm, you may find that your iva repayment does not increase at all.

It all depends on your iva terms: many allow your income to increase by as much as 10%, before applying any increase, others may ask for 50% of any net increase.

Sometimes however, the clauses relating to income only apply to bonuses/ overtime etc. So if you had a big net increase, some iva firms may require a full review.

So dig out your paperwork, and clarify with your case worker.

Let us know how it goes.

Good luck.

Thanks for your reply.

There is no chance of my pay increasing much. I work in the public sector and haven't had a pay rise for several years now.