{"id":1400,"date":"2013-12-17T12:38:23","date_gmt":"2013-12-17T12:38:23","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=1400"},"modified":"2019-01-31T16:05:26","modified_gmt":"2019-01-31T16:05:26","slug":"iva-payments-increasing","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-payments-increasing\/","title":{"rendered":"IVA Payments Increasing"},"content":{"rendered":"\n

Most IVAs last for 60 months and entail making monthly payments over that time. While the IVA proposal sets out the Debtor\u2019s offer of repayment to Creditors, it is only to be expected that Creditors will seek to increase the monthly payments if possible and realistic. <\/p>\n\n\n\n\n\n\n\n

The usual way they do this is to apply modifications to the Debtor\u2019s proposal and, assuming the Debtor accepts these modifications, then the IVA has to be supervised in accordance with the requirements of these modifications.A standard modification applied by Creditors is to require the Supervisor of the IVA to carry out an annual review of the Debtor\u2019s income and expenditure in order that a fair portion of any additional net disposable income is contributed to the arrangement. Here is how one standard modification reads: <\/em><\/p>\n\n\n\n

\u2018Where net income has increased (including any routine overtime) the Debtor shall increase contributions by 50% of the net surplus (after taking into account costs of living) commencing in the month after review.\u2019<\/em><\/p><\/blockquote>\n\n\n\n

What does this mean?<\/h2>\n\n\n\n

Well let\u2019s assume that the Debtor\u2019s take-home pay was to increase by \u00a3300 per month and costs of living increased by \u00a3100 per month then the net surplus would be \u00a3200 per month and Creditors would require monthly contributions to the IVA to be increased by \u00a3100 per month. The Debtor would enjoy an improvement in standard of living to the extent of \u00a3100 per month.<\/p>\n\n\n\n

How does this work in practice?<\/h2>\n\n\n\n
\"\"<\/figure><\/div>\n\n\n\n

About four to six weeks prior to the scheduled annual review, the \nSupervisor will issue an Income and Expenditure (I&E) form to the \nDebtor showing the figures used in the IVA proposal or in the previous \nannual review if there has been one and requesting the Debtor to enter \nthe new income figures and the new expenditure figures. The Debtor will \nbe required to complete the form and return it with a copy of the \nDebtor\u2019s most recent P60 and\/or copies of recent pay-slips \u2013 up to \ntwelve months of these. The Supervisor will review the I&E, \ncalculate any increase in monthly contributions and agree these with the\n Debtor. The annual review is then circulated to Creditors showing the \nchanges.<\/p>\n\n\n\n

What about any overtime, bonus or commission earned by the Debtor during the course of the year prior to the annual review?<\/h2>\n\n\n\n

Here is how one standard modification reads:<\/p>\n\n\n\n

The Debtor shall report any overtime, bonus, \ncommission or similar to the Supervisor if not included in the original \nsurplus calculation and where the sum exceeds 10% of the Debtor\u2019s normal\n take-home pay. Disclosure to the Supervisor will be made within 14 days\n of receipt and 50% of the amount (over and above the 10%) shall then be\n paid to the Supervisor within 14 days of the disclosure. Failure to \ndisclose any exceptional overtime, bonus, commission or similar by the \nDebtor will be considered a breach of the arrangement and the Supervisor\n shall notify the Creditors in the next annual report with proposals for\n how the breach is to be rectified. <\/em><\/p><\/blockquote>\n\n\n\n

For example, if the Debtor\u2019s normal take-home pay was \u00a31,600 per \nmonth and a once-off bonus of say \u00a3400 net was earned then that month\u2019s \ntake-home pay would have increased by 25%. The first \u00a3160 (10%) would \nnot be touched and 50% of the balance of the bonus would have to be \ncontributed. So the Debtor would have to contribute a total of \u00a3120 \nextra to the IVA for that month and would be allowed to keep the \nremainder of the bonus amounting to \u00a3280. This would seem to be fair to \nthe Debtor.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most IVAs last for 60 months and entail making monthly payments over that time. While the IVA proposal sets out the Debtor\u2019s offer of repayment to Creditors, it is only to be expected that Creditors will seek to increase the monthly payments if possible and realistic.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-1400","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=1400"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1400\/revisions"}],"predecessor-version":[{"id":1422,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1400\/revisions\/1422"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=1400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=1400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=1400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}