IVA Help | Change to Circumstances | New Job

Luna_Unicorn

Hey everyone I'll try and keep this short & sweet!

Since August last year, I have been signed on the sick due to illness, which inevitably resulted in losing control of my monthly payments to creditors.

In January this year, I started my IVA. My monthly payment was worked out using my Universal Credit payments I receive each month. At the moment I pay £70 into my IVA each month.

I have since been offered (and have accepted) a job, which is £18000 per year. After tax, NI .etc, I think I worked it out to around £1293 a month (approximately).
[I'm due to start new employment on May 2nd]

Using that figure and taking off my monthly payments, rent, council etc, it would leave me with £193 (again approximately) of disposable income.

Would this mean that my payment would change from £70 to £193?

As I'm still in receipt of Universal Credit (which will change once I start employment - either smaller amount of UC each month or it will stop completely which I think is what I think will happen).
I'm really unsure how to figure this all out? It's a bit stressful and when I rung up my IVA handler I could hear a guy behind him telling the guy on the phone what to say etc. and it just put me off a bit. At the start they were great and helpful but after speaking with them yesterday, it was all vague and it's really got to me I guess.

I want to do the right thing by paying my creditors off. It just seems a bit crap to start a new job (which I'm excited about) to have a bit of play money to enjoy myself for once instead of struggle!!

(Bit of background: I'm 23 and accumulated loads of debt when I was in Uni, with store accounts, payday loans -etc totalled a little over £5000. My DI is over £50p/m otherwise would have considered DRO)

Any help is really appreciated, I don't know who to talk to or who to believe if I'm honest!

Thanks x

mwarby

They'll want the 193 going forward, there is sometimes a clause about pat rises(that you get to keep a certain percentage), but i doubt this applies to moving from benifits into work. I would guess finding work would be one of conditions/expectations from IP when IVA was setup. This term (if you have it) would apply to future raises or job changes, and being in work will help you to progress your income during and after the IVA

The term would stay the same unless you manage to repay all the debt, plus IVA fees

It is worth checking your expenses, as they may have gone up (travel to work, meals at work etc), you may also be allowed the odd luxury you could afford before, like a basic sky package

CocteauTwin

Hi

I'm not sure you got great advice. I think owing 5k isn't worth the drag of 5 years. If you are a graduate then perhaps your wages will rise over this period. So you will always have to pay more each time. Overtime 10% yours then 50% Split. I would also go through your expenditure and add any increased costs to your budget. I would also consider a full and final offer at some stage. If it's only 5 k that might be wiser.

Good luck