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Active IVA advice
impulsive1
Posts: 25 Forumite
Hi All
I have an IVA which I started making payments to last August. My IVA had modifications due to the amount of the debt outstanding (£140k) so it’s over 6 years rather than 5 years.
I’ve been invited to attend a couple of interviews over the coming weeks where, if I secure the role, there will be £1000 a month increase in my salary, although £425 of this will be made up of a car allowance.
Does anyone know if the car allowance is used as an income in the IVA (as it’s classed as a benefit) and with this significant change, plus the fact that my partner is looking to relocate and move in with me it seems that I will end up paying an extra £1200 to my IVA every month for the next 5 years. Just wondering if there is potentially a better option and come out of the IVA?
Thank you in advance
I have an IVA which I started making payments to last August. My IVA had modifications due to the amount of the debt outstanding (£140k) so it’s over 6 years rather than 5 years.
I’ve been invited to attend a couple of interviews over the coming weeks where, if I secure the role, there will be £1000 a month increase in my salary, although £425 of this will be made up of a car allowance.
Does anyone know if the car allowance is used as an income in the IVA (as it’s classed as a benefit) and with this significant change, plus the fact that my partner is looking to relocate and move in with me it seems that I will end up paying an extra £1200 to my IVA every month for the next 5 years. Just wondering if there is potentially a better option and come out of the IVA?
Thank you in advance
IVA started August 2017. 53 months to go :mad:
0
Comments
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Hi impulsive1
I don't have a definitive answer for you re: car allowance as I'm not sure one exists - the allowance presumably reflects the fact that you would do a lot of mileage in the new role, and possibly a lot more than was previously the case, so your outgoings will need reviewing every bit as much as your income for the purposes of the IVA.
If your circumstances are on course to improve, rather than deteriorate, then it seems less likely to me that you'll be able to exit the IVA, unless you're in a position to make a settlement offer that is more attractive to your creditors than simply letting the existing arrangement continue.
On which point, good luck for your forthcoming interviews.
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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