Question on current IVA

leanne2402 · 5 January 2009 at 11:21AM

Hey all,

I'm very new to all this, but have been using the forums for advice for a long time now. I'm currently 6 months into my IVA with partner and just have a few questions that keep coming up.

When it comes to our review, how much of a monthly increase can we expect I've had a small pay rise, but at the moment do alot of overtime. I put 50% of this away ready to hand over, but i'm worried that this regular overtime will go into my wages next year. I'm worried as from april, the way my job does its overrtime is changing, and my monthly amount is going to go down, ALOT.

And, has anyone had any probs with the student loan company in thier IVA (they are still taking payments from my wages).

But, on a plus, i can say taking the IVA was the best thing, so far, i have ever done. I feel like i'm finally paying off my debts, and with the 50% extra payments, feel like we might pay of a large sum of money.

Thanks all.

Dr_Hook · 5 January 2009 at 9:16PM

Hi Leanne

Your wageslips will be assessed in your review, the exact amount of the increase will depend on how much your wage has increased and whether there has been any increase in your expenditure.

It sounds like overtime is being caught under the 50% rule rather than forming part of the set monthly IVA income. That being the case, the 50% rule would continue to apply and you shouldn't expect an increase in your monthly payments because of it, any increase will be a result of the increase in your basic salary due to your payrise. If you're unsure, send a cover letter when you send in your payslips for review explaining that overtime is likely to reduce significantly in the near future.

Student loans now survive bankruptcy and consequently won't be included in the IVA. Unfortunately you're stuck with the deductions from your wage slip until the loan's repaid in full.

Hope that helps, and glad you're happy with the IVA this far

james32_uk · 5 January 2009 at 11:53PM

Going back 2.5 years now since mine started but then the Student Loan was included in IVAs (although not bankrupcy). Has this changed since then?

Dr_Hook · 6 January 2009 at 10:17AM

Since 1st Sept 2004 student loans have survived bankruptcy, however for a while the Student Loan Company had a fairly generous attitude towards IVAs and often agreed to be bound. Obviously this stance has since changed.

leanne2402 · 6 January 2009 at 11:14AM

Thankyou, thats what i thought, but was worried thats all. A small chunk of my 'overtime' is included as i do unsocialble hours regluar. and get a inhancement for this, which is what has been included.

Student loans wise, it was put in with my debts as part of my IVA. They rejected it, but as it went through, was told would be included. Just worried, that as wages go up, so will payments, and then less money to put towards genrally living.

Last question. As my mortage is coming to end of fixed rate, and getting a new one is going to be impossiable (now bad credit history and only 90%LTV, if that) i'm going onto my SVR. But as at the mo it is lower than what my fixed rate was, i wanna keep payments the same (i pay by standing order) as i can afford it now (due to budget set by IVA). Is this overpayment allowed? Just worreid that if we say its gone down, but next 6 months rate goes up, we may have probs with IVA payments? (The changes to mine are quite harse...NR and all that?)

Thanks guys.

james32_uk · 6 January 2009 at 7:19PM

leanne2402 wrote: »

Student loans wise, it was put in with my debts as part of my IVA. They rejected it, but as it went through, was told would be included. Just worried, that as wages go up, so will payments, and then less money to put towards genrally living.

Student Loan wise you should speak to your IP. I remember it took a good 3-4 months to get the automatic collection stopped from my pay. In any case your IP can help - either to help push the stopping of student loan payments or maybe by reviewing your I&E if they made a mistake about whether it would continue or not.

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