Joint IVA - now partner has a job

theitguy2018

Hello,


just a quick one really.


My partner and I are on an IVA - currently I will be paying Exactly half of my debt.
My partner is now working so we can afford to double our payments.


Will the IVA company be able to take more than what would otherwise cover the entire debt over 5years?

For example, if 50 a month covers half of my entire debt (as agreed by IVA), any additional income, will it reach a maximum of 50 extra or can they take more/shoren the IVA?


Sorry if I make no sense!

sourcrates

Hi,

Your payment will be decided by your disposable income.

If your costs go up, make sure you budget for them, it’s best to tell your IP now rather than wait for your annual review.

theitguy2018

Awesome stuff!


We'll have about 600 extra per month


to cover the entire debt we would only need to pay 85 extra per month.


Will they take 50% of the 600 spare or the 85 to cover the entire debt?


or will it just depend entirely on my IP practioner? Sorry, useless with this stuff!

Mermaid89

You will be expected to pay your disposable income until the point where you pay 100p/£ (debt level in full) plus IVA fees. You wouldn't be able to pay just an extra £85 per month and it would be 50% of the difference in disposable income. Please advise them of this change now otherwise it may cause problems at your annual review.

theitguy2018

So an extra £85 would take my repayment level to 100p/£

So if I get extra money on top of that additional £85, as disposable, would they leave that or take it?


I don't see why they would take more money if the entire debt plus fees are repayed, unless the shorten the IVA?

Mermaid89

I think you've misunderstood my post. You must pay your disposable income till you reach 100p/£. So if it means paying an extra £600 per month for a few months (rather than X amount of years) this is what your supervisor will insist on. If PPI or any other kind of refunds come in before you reach 100p/£ this is still bound by your IVA. You are correct in your assumption that it MAY reduce your overall term. You will not pay any more than your full debt level plus fees. However, fees are typically around £5k so it is likely that in hindsight you would have paid more to your IVA rather than paying creditors directly. I hope this makes sense