IVA's and CSA

Headache123 · 3 May 2019 at 11:54AM

Hello, I have recently entered into an IVA and they added a modification to my contract that I must claim CSA for my child. My ex does not agree that an IVA company can use csa as an income and is seeking legal advice. Are they allowed to do this legally? They want the equivalent of 50% of what I receive to be paid back to them.

Please help!

foxy-stoat · 3 May 2019 at 12:37PM

If you look on the Payplan site, they state that CSA payments should be included as income. They are for essential costs that should already be in the budget.

You need to speak to your IP and get them to amend the contract to remove this modification - not sure if and how they can, maybe another creditors meeting is required.

Headache123 · 3 May 2019 at 12:45PM

The csa payments have not been calculated yet so I will contact them once this is done. I was just wondering if what my ex had said was right and illegal. If he could refuse to pay?

foxy-stoat · 3 May 2019 at 1:01PM

Headache123 wrote: »

The csa payments have not been calculated yet so I will contact them once this is done. I was just wondering if what my ex had said was right and illegal. If he could refuse to pay?

The IP are not breaking any laws, its just an unfair term that has been added and should of been questioned before you sign the IVA contract. The fact you signed it makes it a contractual term that would require a meeting to vary the terms, if they agree.

It doesn't give your ex the right not to pay as the children would still need whatever the money was for.

If you have included in your monthly budget all the costs associated with your children and not included the CSA payments then they might see it as they should be included. You just need to make sure that the income you will receive cancels out the expenses you have to pay.

PrettyKittyKat · 6 May 2019 at 6:11PM

It is no illegal to include CSA as this money from your ex is to pay towards their upkeep - which is all included int he expenditures on the IVA (roof over their head, head, water, food, travel, clothes etc). If there is another parent in a position to contribute towards the costs of the children then I don't think it is unfair for the creditors to ask them to do this. From the creditors point of view they could argue that had your ex partner had been contributing child maintenance from when you separated then you would have had more money free to be able to pay your creditors and maybe not become insolvent (of course I'm not saying this was the case for you but rather just giving another view).

The benefit is that at least you get to keep 50% of it! If you had already been receiving CSA then your disposable income would have been higher by 100% of the CSA so your payment would have been proposed at this higher level!

I suspect your ex is saying he thinks it is illegal to get out of paying it, which is more concerning.

DorisTrousers · 7 May 2019 at 12:38PM

It is a common clause, and IVA companies do not insert it, creditors do. I guess their view is that as you get 100% of nothing, then so do they. At least 50% of something sees both sides of the equation financially stronger than they were before.

IVA's and CSA

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