Circumstance change in IVA

DaisyJanie

Hi, I have an IVA and my husband also has one, this was only agreed on 30th March. Was looking forward to a much easier life with more disposable income than before. 

Now it’s looking like our marriage is irretrievably over and I would like him to move out (we have a mortgage together and also 2 children who I don’t want to disrupt). I am trying to work out how we can afford to live separately. 

I earn more and can afford the mortgage and bills for the house, but childcare is an issue (or will be if things go back to normal). My youngest is 3 in January so will get 30 hours for her then and it won’t be so bad. 

I claimed tax credits about 2 years ago  when my husband was self employed, but I have a debt of about £6000 that was included in my IVA, because we no longer qualified as he got another job. If living alone with 2 children and childcare costs I feel I should qualify for tax credits again but not sure if I should be claiming since I already owe them money.   

Would I be entitled to claim again from hmrc even though I had a previous debt now in IVA?

sourcrates

Once the Arrangement is agreed HMRC are legally bound by it, in the same way as the other included creditors. They are no longer allowed to recover the overpayments directly from you.

So if you qualify for a new tax credit award, they cannot offset a previous award balance, included in your IVA, against your new claim.

Hope that  helps.

mwarby

If you haven’t done do already you’ll need to talk to your IVA company to update them. 

They will probably want to go over income and expenditure again. This may mean that your repayment is no longer appropriate, if it goes up this isn’t a problem, if it goes down they may need to get creditors to approve