IVA question

Dragonrock69

Hi - I took out an IVA 2 years ago, I was paying £500 per month in minimum payments and had no disposable income. I'm very fortunate to have been offered a promotion at work which means my salary would increase quite a bit. Looking at my monthly commitments, I could then afford to pay £600 per month into the IVA. I would therefore be paying more than I did based on the old minimum payments, which I dont want to do as I feel I will end up in a worse position than I was 2 years ago? I just dont know what to do for the best and whether to accept the promotion as I wont even feel the financial benefit of doing so. Any advice would be appreciated

cheers

foxy-stoat

How much was you paying before the IVA, and how long would it of taken you to clear your debt?

In an IVA you arent suppose of have any disposeable income, thats the way it works, so if you earn £20,000 or £50,000, you will not be any better off, only your creditors.

You wont be in an IVA for ever, so after you finish you will be better off.

Can your living expenses increase so your have a better quality of life? I moved from a rented room in a mates house (£200 a month including bills) prior to my IVA into a nice 1 bed flat (£600 plus bills) when I started my IVA.

DorisTrousers

Under a protocol compliant IVA, then any uplift would be 50% of the difference, meaning both you and the creditors involved will feel some benefit.

For example, if your payment is £200 and at annual review it seems that you can afford £600, then you get £200 and they get £200, meaning your payment goes to £400.

Take the promotion seems to be the best bet I reckon, but do speak to your own IP, hypothetically speaking of course at this stage, to get their take on it.

foxy-stoat

DorisTrousers wrote: »

Under a protocol compliant IVA, then any uplift would be 50% of the difference, meaning both you and the creditors involved will feel some benefit.

For example, if your payment is £200 and at annual review it seems that you can afford £600, then you get £200 and they get £200, meaning your payment goes to £400.

Take the promotion seems to be the best bet I reckon, but do speak to your own IP, hypothetically speaking of course at this stage, to get their take on it.

Agree, until the next annual review.

National_Debtline

Hi Dragonrock


I'd agree with the posters above. From an IP's point of view, it wouldn't make sense to deter you from accepting a promotion, as the pay rise would only increase the likelihood of them earning their full fees and the IVA reaching a successful conclusion. Allowing you to keep a share of any earnings increase is intended as a carrot.


Dennis
@natdebtlien