Some Advice Please

edited 30 November -1 at 1:00AM in IVA & DRO
5 replies 1.8K views
boblardoboblardo Forumite
99 Posts
Tenth Anniversary Combo Breaker
edited 30 November -1 at 1:00AM in IVA & DRO
we are approaching the 1/2 way point of our IVA, it has been tough but we are managing

My wife hasn't been working but now she is in a position to go back and is hoping to return to work shortly

My question is hopefully quite simple

I know that with things like bonus the IVA expects 1/2 to be paid in but what happens when our income increases due to a partner returning to work

obviously there are the associated costs with her getting to work etc but will then take all the excess or will our income be reassessed

Replies

  • HappyMJHappyMJ Forumite
    21.1K Posts
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    An IVA is an individual agreement. You don't need to declare your OH's income. Although you're in a partnership you don't even have to tell your OH exactly how much you earn. They'll assume you pay no less than 50% of the household expenses and figure it out from that.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • I'm a debt advisor for StepChange and have some experience in this field!

    It would depend on wether its a sole or joint IVA firstly as if it's a joint IVA (two sole IVA's running concurrently) you would need to inform the IVA company on a change of circumstances.
    I can only speak for experience where I work but your budget would be reviewed and it may lead to an increase in payment of around 50% of the increased surplus.
    MFW: £65,421 to go!
  • boblardoboblardo Forumite
    99 Posts
    Tenth Anniversary Combo Breaker
    Thanks for all the replies

    At the moment we are paying back something like 60p in the £, with the wife returning to work this is likely to mean our payments could increase significantly

    I understand we cannot pay more than what is owed + fees but what happens if our payments increase to a level which would mean we would payback 100% + fees sooner than the 6 year IVA Term completes.

    Bob
  • mwarbymwarby Forumite
    2K Posts
    Part of the Furniture 1,000 Posts Name Dropper
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    HappyMJ wrote: »
    An IVA is an individual agreement. You don't need to declare your OH's income. Although you're in a partnership you don't even have to tell your OH exactly how much you earn. They'll assume you pay no less than 50% of the household expenses and figure it out from that.

    But saying that, if you've previously declared your partners income, you should probably tell them when it varies.
  • boblardoboblardo Forumite
    99 Posts
    Tenth Anniversary Combo Breaker
    Sorry to bump this up

    My wife hasn's had any income for the past three years but is now going back into full time employment. We have informed the IVA company who have said they will bring our annual review forward, once my wife gets her first pay slip, so we can adjust our payments appropriately
    boblardo wrote: »
    Thanks for all the replies

    At the moment we are paying back something like 60p in the £, with the wife returning to work this is likely to mean our payments could increase significantly

    I understand we cannot pay more than what is owed + fees but what happens if our payments increase to a level which would mean we would payback 100% + fees sooner than the 6 year IVA Term completes.

    Bob
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