Pay increase help!

Peanutbuttertoast

So I have had a pay increase which I obviously need to inform my IVA about. It is about £70 a month. That being said, I have experienced pay rises like everyone else with council tax, phone bill, car insurance etc. will they just expect me to pay the extra or will the extra amounts be considered too? I could really do with the extra money  


also UC has just gone up slightly. I was specifically told that I don’t need to declare UC going up, over time and bonuses under £200. Is this correct?

sourcrates

How much of your extra income you have to pay to the IVA depends on your IVA terms, but a half has been common and from August 2021 new IVAs that use the standard protocol will say:

You will be required to increase your monthly contribution by 50% of any increase in disposable income one month following your annual review.

So as its only £70 a month, and your expenditure has risen at the same time, wait until your annual review comes around to declare it, as its only 50% of your disposable income, that goes towards any increase, not 50% of the actual increase.

fatbelly

Yes, it's based on disposable income. So if your pay has gone up 5% and your expenditure too, then there's no change.

I would mention the UC figure

Peanutbuttertoast

Thank you. I think this is what I’m feeling abit worried about, if I have to increase the full amount meaning I’ll never be able to earn any more money!

Glitzy2222

good afternoon, I’m in exactly the same position. Got my review soon so I’ll be updating my pay then. 3rd year of iva nearly complete…. Paid £6k but only £1.4K to creditors 🙄 so reluctant to pay more of their fees. Actually thinking of cancelling and paying creditors directly as misold the iva originally. Spoken to 2 of them and they are happy to arrange separately.
Good luck and don’t be bullied by them.