Why do I owe additional money?
We have taken a look at your wage slips and bank statements, and it shows you received a higher income last year compared to last year.
In an IVA you are allowed to earn 10% on top of your income before any increase is payments is needed. 50% of anything after this needs to be paid to your creditors. That way you get to keep 50% and it is fair to both sides.
For example, if your IVA proposal states you earn £1,000 a month, you can earn £1,100 and the IVA payment stays the same. If you earn £1,200 you would need to pay £50 to your IVA.
The terms and conditions of your IVA are below:
“Where at any time during the arrangement I receive any exceptional overtime not included in the original surplus income calculation, bonuses, or payments from my employers that are similar to a windfall in nature then I shall include this additional income as an asset within the arrangement where the sum exceeds 10% of my normal take home pay.
I shall disclose the receipt of such monies to my Supervisor within 14 days of receipt and pay 50% of the amount (over and above the 10%) received to my supervisor, such payment to be made before the end of the year of the arrangement in which I receive the monies. Routine overtime allowed for in my surplus income calculation is not included, and I understand that this obligation is in addition to my obligation to provide details of my income and expenditure to my Supervisor on an annual basis, and to make any increased contributions arising from that review. Failure to disclose any such overtime, bonus, commission or similar will be considered a breach of the IVA and the Supervisor shall notify the creditors in the next annual report with proposals for how the breach is to be rectified.”
I have earned additional money, but it was to pay for something that wasn’t expected. What should I do?
If the additional money was earnt and used to pay for something essential, then we request that you provide evidence of what this has been spent on and why.
For example, if it was to pay for an essential appliance or boiler repair, we would need the receipt of bank statements to verify. We will then be able to look to offset that from the total additional money you earnt and re calculate the 50% due. Please note this is at the discretion of your IVA Supervisor.
I did earn additional money, but I have spent it. What are my options?
We understand that you may not have the funds available and want to help. You may spread the additional payments over a time frame that you can afford. Ideally this will be over 12 months, before the next review. If this is not possible then they will need to be repaid before the end of the IVA.
Alternatively, it may be possible to extend the term of the IVA to make the payments at the end.
I have earnt more money, but my circumstances have changed; what should I do?
If your circumstances have changed it is important you let us know and provide evidence of those changes.
For example, if you started a new job with a higher salary but this required a train ticket (not previously paid for) we would request the contract of job and proof of train ticket. We would then be able to conduct a re-review to offset the additional expenditure.
Why has my monthly payment increased?
The review indicates that your increase in income is consistent and, once changes in your expenditure have been considered you can afford to pay more. The new payment has been calculated, allowing you to keep 50% of the increase. This ensures it is fair for you and your creditors.
If you don’t believe this is affordable or your circumstances have changed, please contact the office as soon as possible on 01625 801 099 so we can pause the increase in payment, whilst we complete another review.
There are expenditure items missed off or at the incorrect figure.
If your fixed costs (rent, mortgage, utilities, childcare) have increased but isn’t noted on your income and expenditure please send proof of the increased costs to firstname.lastname@example.org (bills, tenancy, bank statements). If your flexible costs have increased (housekeeping, communications, hobbies, fuel etc) please contact the office so we can amend them.
Please not there are guideline figures that we must adhere to, based on the Standard Financial Statement. If your expenditure falls above this, then we will not be able to sanction a reduction in payment.
I don’t agree with the review or want to pay a different amount.
We don’t want your IVA to fail so will assist you as much as possible to reach a solution, however as Supervisor of the IVA we have to stick to the terms of the arrangement.
If you do not wish to increase your payment, then we can refer the matter to your creditors to decide. This I called a variation meeting. Please contact us to discuss.
If you believe the IVA is no longer the best solution, we can talk you through the other solutions available to you so you can make an informed decision on how to move forward.
Will I repay my IVA early?
Your IVA will complete if you pay back your total debt level, plus the fees of the IVA, detailed on your IVA proposal.