IVA annual reviews

mrcactus

I'm almost 2 months into my IVA now (a long time to go I know).

When doing the income and expenditure with my IP, I said I pay £250 rent to my parents and various other outgoings here and there like phone contract, birthdays, xmas etc.

I take home, after tax roughly £1k and pay £160 p/m into my IVA, so left over I essentially have £590 left. But last payday and the pay day just gone, I've gone a bit wild with my pay packet. I've still paid last months IVA payment and still have this months set aside.

My main worry is when it comes to the annual review, that I have spent some on gambling (naughty I know!) and spent alot in my local shop on 'goodies' that I wouldn't usually buy. Will my IP look at all 12 months worth of bank statements and see that my spending has differed to what;s on my IVA income and expenditure/proposal?

The IP did alter what I spend on different things, basically the cash I had left after my proposed £160 p/m payment they divided between all the categories.

This is my Statement of Affairs or Income and Expenditure on my proposal before it got sent to creditors:

Expenditure:
Rent £250
Food, Toiletries & Cleaning £222
Clothing & Footwear £34
Sports, Hobbies & Entertainment £40
Sundries & Emergencies £15
Telephone Inc Mobile £78
Dentist/Opticians £17
Medicines/Prescriptions £11
Hairdressing £20
Meals At Work £44
Satellite £26
Pet, Pet Food & Insurance £34
Newspapers & Magazines £5
Laundry £10
Public Transport £158
Tobacco £40

Now I don't spend £158 on transport or £34 on pet insurance but maybe spend more on meals at work for example.

My main point/question is, does it matter if what I spend my surplus income on (after my £160 IVA payment) as long as I make the payments on time?

I haven't taken out any more credit or spent on my credit cards (think they're blocked now any way). I took out a new phone contract for the same price per month, although I did pay £120 buy out as my previous contract still had a few months left on it.

I'm getting a bit paranoid now...I know I've got to be careful. Could I just take my surplus income straight out of the bank then they wont know where it's gone?

Thanks.

Craig1981

your annual review will usually consist of:

proof of income for past 12 months (payslips)
P60
any other income details
proof of any increase in expenditure from original I&E

someone will be along shortly to offer more on this i am sure, but this is the information i was requested to provide on a yearly basis

irishgeal1

Good post mrcactus I will be following this closely as I'm in same boat as you.

I've nothing to hide but keen to see what exactly is required at annual review.

sourcrates

Annual review usually consists of your last 3 months bank statements, and last 2 payslips. (although this may differ by company).


You are not massively scrutinized at your review, its purpose is to see if your income has increased sufficiently to up your payments, or not.



They are not interested in your spending.

Mermaid89

This is what I do for a living. We are interested in your last 12m earnings (payslips, p60 etc.) We check for additional credit breaches (credit cards, overdrafts, loans) and any unusual activity provided on bank statements (large credits into the account that we cannot trace the source) We really are not interested in day to day spending unless something looks suspect, then we query it. For what its worth...reign in the gambling as normally winnings over a certain threshold become assets of your IVA and you will need to pay them in.

mrcactus

Mermaid89:
I don't tend to win with the gambling so will take steps to block myself on those.

So they will likely ask for the years payslips and p60, is there a rough amount of bank statements they ask for? I see a lot of people on here where their company only asks for the last 3 months.

I've got nothing to hide with regards to additional credit etc as I've not taken out any more loans or credit cards etc. How do they check this, through credit check or bank statements?

Someone did post on another thread that they take out most/all of their money (minis IVA payment) and just pay with cash for everything.

Again, I've nothing to hide I just don't want any reason for my IVA to fail for some silly thing I do which could be avoided.

Thanks.

Mermaid89

mrcactus wrote: »

Mermaid89:
I don't tend to win with the gambling so will take steps to block myself on those.

So they will likely ask for the years payslips and p60, is there a rough amount of bank statements they ask for? I see a lot of people on here where their company only asks for the last 3 months.



Thanks.

Typically 3 months for bank statements but can vary company to company. You should have been provided with a reminder letter what confirms the documents you need to send

mrcactus

Will have to wait until that time comes. I'm only 2 months into iva but just want to get all facts etc to avoid doing some thing stupid, I have the tendancy to mess things up... The whole reason I'm in this mess anyway haha.

PrettyKittyKat

The Ip won't care if you decide to shop at Waitrose rather than aldi if you are maintaining payments. You will need to provide all payslips, P60 and usually last 3 months bank statement. Sometimes IPs want evidence of petrol or public transport costs. If a DD shows as a different amount at your annual review on your bank statement (e.g. DD for pet insurance now show it is only £10) then this will be updated for going forward but not backdated. Gambling is frowned up and not a good habit to have as it can lead you into financial difficulty.

mrcactus

The main thing I'm worried about is the IP went through my income and expenditure and when I said I didn't pay things like pet insurance and public transport, they said its best to put something down on there as this will look more appealing when we submit your proposal to your creditors.

I don't spend half as much as listed on my i&e, so don't know if I should take all the cash out and buy everything with cash.

The main reason I entered into the IVA was to stop paying 1k per month on minimum payments and now this will allow me to save some money.

sourcrates

Your allowable living expenses are just that, throughout the whole 6 years of my IVA I was never once asked to justify a payment or an expense, my only IP contact was at annual review, my wages never increased that much, so neither did my payments, the scrutiny is not as in-depth as you perceive it to be.