A reader asked:
I’m worried about my first IVA annual review. How much detail will they go into? I’ve found the year tough with a few car problems. I switched gas and electric to try to save money but it hasn’t helped much.
This is one of the many IVA issues where I have to start by saying that there is no definitive answer for everyone. It depends on the terms of your IVA, your IVA firm, your own situation and on how much your situation has changed over the year.
If not much has changed
Unless your income has gone up or your expenses have changed a lot, the annual review is often pretty painless.
You will normally be asked for some bank statements (or, sometimes, direct access to your bank account), some payslips and any P60s/P45s. Some firms want you to complete a new Expenses form – you can use the one agreed at the start of your IVA or the previous year as the basis and then look at your recent bank statements to see how much has changed.
If the overall picture and the bigger items such as mortgage/rent, travel costs, utilities look much the same, not many lenders will go deeper. They don’t want to spend any more time on your annual review than they have to! You are very unlikely to be asked what you bought at John Lewis for £120 in September or challenged about £20 spent on bingo in May.
You have had extra income (or lower expenses)
Your income may have gone up because of a payrise, better job, bonus or overtime. Most IVAs are similar to the 2016 IVA protocol to cover this so what I am describing here follows those standard terms.
Increases in your pay will result in your future IVA monthly contributions being increased, unless your expenses have also increased, see below.
You should have reported overtime and bonuses to your IVA firm during the year if they exceeded 10% of your normal take-home pay. If you didn’t do this at the time, this will be looked at in the annual review and you may now owe some money for last year, typically 50% of the amount over the 10% you are allowed. If you had put that money aside, you can simply pay it. If not, your IVA term may be extended by some extra months to allow you to pay the extra.
If overall your expenses have gone down, this increases the amount of “surplus income” you have in the same way that a pay increase does.
This comes as an unpleasant surprise to some people who thought they just had to make the “agreed payments” for the five years of their IVA. It should have been explained to you before the IVA started – it probably was, but you may have thought it wasn’t important small print.
Your expenses have gone up
Although it may feel that IVA firm just wants to do the annual review to get extra money from you, increases in your expenses also need to be taken into account. It is to your advantage to make sure this is done!
Think about recent changes in particular. For example if your council tax or water rates have only just gone up, the annual total for last year may not be very different to the budget, but you now know that next year’s expenditure will be higher so this needs to be pointed out to your IVA firm.
If your income has gone up, increases in your expenses may mean that you don’t have to increase your IVA monthly payment.
When your income hasn’t increased but your expenses have, you may be starting to find it hard to manage. The annual review is a good point to talk to your IVA firm about this, before you hit a crisis and can’t make your monthly payment.
They have the discretion to reduce your payments by 15% from those originally set in your IVA. Larger reductions may be possible if your creditors agree. These reductions are more likely to be possible if you are paying £200 a month than if you are only paying £70, where there is little room to reduce the payments.
Dealing with the B team for Customer Service?
After being cherished and valued while you were in the process of signing up for an IVA, the annual IVA review process may feel very different. You get a curt email telling you to produce six pay slips and three bank statements and to fill in an Income & Expenditure form.
Even the most factory-like IVA company actually would rather your IVA succeded than failed, as it means less work and more fees for them. But many large IVA firms do not have a good reputation for customer communication. It’s hard to talk to anyone on the phone and emails sometimes seem to be ignored.
If this happens to you, don’t panic, it doesn’t mean your review is going to go badly.
But if you don’t agree with the proposed monthly payment at the end of the review, be prepared to keep restating your point. Start to do this in writing (email is fine) and insist on getting a reply if you think they are ignoring something important.
Overtime, new baby costs & an IVA
Can’t pay your IVA this month?
How equity release works in an IVA
Tim Harness says
Once again a very good review from the Debt Camel!
Chris says
Also, if I may add, if you are with Creditfix you need not got through the pain of houshold bills or payslips.
They have a new (and very good) online system that searches your bank account and sorts all payments into catagories which you can alter if you disagree. It is extremely accurate and much less of a pain.
I will also give you a good example of payment increases. I am now only two payments away from completion but in November I was given a small pay rise and promotion. This only came to around £104 per month. I informed them 3 times including a wageslip. This all seemed to be ignored, at the review in November my payments were increased by £25pm which was absolutely fine by me.
Deciding_if_an_iva_is_the_answer? says
Do they complete credit checks again? And check your details that way? Or do they just look into the one account you give them?
I want to save some money in an account and don’t want it to be viewed by them.
Sara (Debt Camel) says
My guess is the system will spot you transferring money into the savings account… There is no reason why you shouldn’t save small amounts in an IVA – very few people are able to save large ones!
Fezzaj says
Hi do you get to see what they are submitting and how far back does the inline portal go?
Franbrad says
I was with Mccambridge Duffy. During my IVA I only had to send pay slips and complete an expenditure form.
When I had unexpected expenses I was able to contact them easily and arrange a payment break.
Any letters received from my supervisor were, as you said curt, however overall, it was a positive process and I completed in full a year ago.
Ron Lake says
I was diagnosed with terminal cancer in Nov 2018. Suddenly my housing benefit was increased, lowering my rent. I also started to receive Attendance Allowance. These were said to be ‘legislative’ and none means tested. Can Aperture / DFD count these as extra income?
Sara (Debt Camel) says
Yes they can be counted as extra income BUT some IVA firms won’t do this AND for those that do, you should also be allowed to add any additional costs that you have because of your health problems. These could be extra heating, food, transport costs eg parking at hospital or taxis to get to appointments.
Have you talked to Aperture about this? If not, do so straight away, I would expect them to be sympathetic and reasonable given your situation.
How long until your IVA finishes? Are you managing the current payments OK or are they a struggle?
Ron Lake says
I never missed a payment from the start. The start date was June 18th 2014 and has to run for 72 months. It was a struggle until my condition caused the Housing Benefit increase and the Attendance Allowance to begin. It appears that they will allow me to keep 10% plus 50% of the remainder. These started in September 2018, but as I was told they could not be regarded as income, I didn’t report them to Aperture. They sent me papers around 18 Dec 2018 regarding a revue and demanding this was completed by 21st December, but these reviews are usually conducted in June of each year. That doesn’t sound very reasonable to me. We now have to use a computerised system to complete the review, which is something else I am expected to cope with. I wish I could find a telephone number for them, so that I can explain what happened, as it has still not been completed.
Sara (Debt Camel) says
No that doesn’t sound good unless they have allowed you to increase your expenses as well :( You need to put in a formal complaint and ask them to look at this.
Denise Ramadan says
Hi please can you help, we have finished our IVA and got our certificate of completion, but i can not seen to get it taken off or state settled on our credit file, we started this Iva back in march 2011 and finished in August last year, should it still be showing ?.
I keep calling Aperture and can not get though, any help please
Sara (Debt Camel) says
When did you get the certficate of completion?
KT says
My father wants to give me £1500. He inherited money when my grandmother died and wants to give some of it to me and my sister.
I told my IVA firm this to check it wasn’t an inheritance but they say it has to go to my IVA anyway as it’s over £500. What would happen if I asked dad to only give me £500? I don’t want to wait until the end as my IVA has 3 years to go and we really need some things in the house asap. But now they know it should be 1500 can they take the 500 because I’m trying to get round the rules or something?
Sara (Debt Camel) says
It won’t be a problem if you are only given 500 – this money doesn’t belong to you now, you have no legal right to it, it is entirely up to your dad when and how much he wants to give to you. If your IVA firms says anything about this, just tell them you explained about the IVA to your dad and he said he would only give you £500.
Your dad could then give you another £500 in 18 months time. If your partner doesn’t have an IVA, another option would be for your dad to give the £1500 to them, not to you. Or of course your dad could buy the new washing machine or whatever you need and let you use it. Lots of possible options if your dad is agreeable.
Lionel J says
Hello All,
Could you please advise. Last year our iva firm made me pay extra because I was over my allowable pay, for a few months of the year.
I understand this, you keep 10% and anything over that they ask for half and you keep half.
My question is … is this correct for seasonal work?
I’m busier in the summer months than the winter. So I save up any extra in the summer so I can survive in the winter when my pay is a lot less.
Also my partner’s pay is limited to £520 per month, before the above comes into action. Our son gets DLA and we receive carers allowance.
Is carers allowance classed as income? So should it be added to the £520 ? As what she can earn each month before half gets taken off her.
The carers allowance and DLA may be stopping.
Thanks for your help Sara,
Sara (Debt Camel) says
Can I ask if you have a mortgage or are you renting?
If you have pay that varies by season, this should have been discussed with your IVA firm befor eyour IVA was set up – was it? Who is the IVA firm?
What do you mean your partner pay is limited?
Lionel says
We have a mortgage. Its interest only. So nothing is getting paid off it at the moment. Approx 12 years to go on it.
The seasonal work started as the iva started. It was not discussed with McCambridge Duffy.
Our son at the time was 16/17 years young when we started. they did say if we didn’t include the DLA then you are unlikely to get the iva approval.
Sorry maybe a better word … Partner’s pay is ‘limited’ to £520 per month, before they take … 50% to the iva and 10% over that I believe she can keep and anything over that 50 % goes to the iva.
My pay is limited to £790 per month.
Winter time I can get as little as £550pm and summer £1000pm.
None of this is classed as overtime. I’m employed on a zero contract hours.
Sara (Debt Camel) says
So with those points where the “overtime” calculations start, do you think you can manage the IVA payments through the winter?
Your son’s DLA will be ending, has he applied for PIP? Will he carry on living with you? Was this discussed when your IVA was set up?
Lional says
That’s the whole point I can’t quite grasp. There is no overtime. I have simply saved up in the summer to manage in the winter.
Yet at last years review (April), I ended up paying £350 more to them. I did spread this out over my busier months.
My review is due now , so because this was not discussed at the beginning I guess I will have to pay an amount again as some months I have gone over the £790pm ?
Our son is in the process of applying for PIP. He does still live with us.
This was discussed at the beginning and they basically said we would not get the iva if the DLA was not included in our income.
Thanks again Sara
Sara (Debt Camel) says
I think you need to discuss this with your IVA firm in the review. Say you need to be able to save up more in the summer to get you through the winter, this isn’t “spare” money.
The PIP issue you can’t do anything about now, you just have to wait and see what happens.
Lional says
Thank you Sara.
Warren says
Hi
After reaching 5 yrs i was informed because of done equity i have to oay a 6th year. Not wanting to do this i offered to pay a lump dum of £7000 (i currently pay&491/month) this was from a loan, they held a meeting and agreed.
Do i still have to complete the review even though the IVA company have agreed this will end the IVA?
Also i used to do some scouting which we now receive expenses for the time we spend and also we are refunded the mileage , this is approximately
£350/month i spend around 20 hours per week. Are the IVA company entitled to all of this ? Some of it? Not the mileage ? Or none because its just expenses i have
Acrued?
Sara (Debt Camel) says
Yes there will still be a final review.
That is a lot of extra money if it was over many months, have you not mentioned this to your IVA firm before? If some of it relates to extra mileage, I wouldn’t have thought that would count as income. But “expenses for your time” does sound like it may be income.
Mike says
What is the maximum debt repayment by joining the IVA program? Is it 100% of my debt or you can taking as much as you want if my financial situation improves?
For example: I earned £ 1,500 a month and had expenses of £1,400 so I could pay IVA £100 per month. After a year, my financial situation has improved and I earn £ 2,800 and my expenses have not changed so I have £ 1400 left in my pocket, which I have to give 50 perceny of this extra £1400 to IVA which gives £ 700 per month.
My total debt is £ 12,000 and agreement from creditors to pay £ 6,000 over a 60 month which gives £ 100 a month. Now I have to pay £ 700 a month plus all the other bonuses they take away from me too! Which means that I pay over £ 30,000 for the next four years !!! Is it possible?
Regard Mike
Sara (Debt Camel) says
It is 100% of your debt plus the IVA fees plus (sometimes, not all IVAs have this clause) 8% per annum statutory interest on your debts. I suggest you ask your IVA firm if you carry on paying this much, when will your IVA be completed?
Mike says
Thank you very much for the answer but I have one more question. My new job is temporary so what will happen and I know that happen if one day I come back to my earlier earnings or even lower? I will have to wait until the next settlement? I will not be able to pay such a high amount during this time.
My IVA start last year so four more years left 🙄
Sara (Debt Camel) says
Your IVA payment can be reduced at any time if your income drops a lot, you don’t have to wait for the annual review. If you can save some money when you are getting paid more (the IVA shouldn’t take all your additional income) that will help you get through.
Ally says
I have received a small windfall from an insurance accident. I did not claim for loss of earning, just for pain and suffering. I’ve also tried contacting the Iva company to inform them about this but have not had any response from them.
Will I be able to keep the money or will this be taken off me?
Sara (Debt Camel) says
which IVA firm?
Ally says
It’s called Hanover
Faye says
I’ve been on my iva for the last 9 months now. I only ever had 140 pound left to myself after all the Bill’s, food and expenses but as I dont need to pay my partner much support payment anymore i have 400 pound left to myself monthly.
Will my iva take this off me or charge me more monthly or can i save it up in an isa so i can buy a new couch for my home or save the 400 extra monthly for a deposit on a home to mortgage when my iva finishes?
If I can save it up monthly will the iva take my savings off me if they reach into a high number like 10000?
Sara (Debt Camel) says
At your annual review, your IVA firm is likely to notice that your expenses have dropped a lot and ask you to increase your monthly payments into the IVA.
Of course if you have some other expenses which have increased, that will also be taken into account. But it is very unlikely that you will be able to save up large amounts of money each month.
Robert says
Hello ,I changed jobs, my pay was reduced, but I don’t want to cut IVA payments, I’d better cut costs. Is that how I can do it ?
Sara (Debt Camel) says
Why would you not ask for your IVA payments to be reduced?
Of course if your new job means you have lower commute costs or some other lower expenses, then they can obviously be reduced. But most people’s allowed expenses in an IVA are not generous so they are hard to cut.
It is better to have the discussion with your IVA firm now, than wait for 6 months and find you can’t cope.
LEYTON says
Hi there I am about to take out an iva…. I have a property in france which is fully owned. Worth about 40000… there is no mortgage on it. Would I be required to sell it with an iva?
Sara (Debt Camel) says
In most IVAs, unless a property is listed specifically as an “excluded assest” then it becomes part of the IVA and you will be expected to sell it and all the proceeds will be paid into the IVA.
Have you discussed this property with your IVA firm? If not, you need to do this urgently.
Fiona says
Hi.
I have been earning extra income so have asked for a review to save me bugging them each month for manual payments.
In the new budget form there is a box for partner’s debts. My partner’s wages are included in our budget and his wages are about half the amount of mine.
I thought we were not allowed to put in partners debts ?????…..but it is obvious if you look at statements that we have been paying them. So how does this work???
Also when they recalculate my contribution will they still allow me the 10% buffer from my original wages – I was doing lots of overtime to be able to afford more, it seems unfair if they make me pay it all to them when the original agreement says I can keep the 10% buffer.
Thoughts????
Sara (Debt Camel) says
So how does this work???
I don’t know, I sugge4st you complete the form accurately and see what they suggest.
Also when they recalculate my contribution will they still allow me the 10% buffer from my original wages
Again I don’t know, I haven’t heard of anyone asking to do this. It would have been better to have asked them what they would do before deciding this was what you wanted to do…
Fiona says
Hi Sara
I spent weeks asking them to calculate what I would owe each month as I had a new self-employed job on top of my PAYE and they never got back to me. So eventually, after I spoke to the right person, and not a customer service rep, they said that they would do a review of my income. It is just the same as the annual review, they have sent me the annual review form to fill out but the budget is much more in-depth than the one you fill out for your IVA application. They will be treating it just like an annual review.
Sara (Debt Camel) says
I suggest you fill it in and see what they say. If you think it isn’t fair, then you can explain why.
Fiona says
Ok, thank you.
Lee says
Hello, I entered into an IVA earlier this year, as i am married and have been with my partner for over 10 years it was deemed we had a financial tie and therefore her salary would need to be considered when conducting the I&E, has recently been secured a promotion and with it she will receive a payrise…..she has already told me that any increase in her salary she will be taking full benefit of, to pay her debts and spend as she sees fit (and why not it’s her money, she’s worked hard for the promotion/payrise), selfishly though i am wondering where that leaves me….she will continue to pay half of the household bills but she will not disclose her salary for the purposes of any future IVA review….i am of the impression that she is of no legal obligation to either declare her salary increase or provide proof of it as she is essentially a third party and she is not bound by the IVA, only me, is that correct? if so, how do i play this? Do i contact Aperture and tell them or do i ignore the fact anything is happening at all because my circumstances will not be changing as she will be keeping her pay rise for herself?
Sara (Debt Camel) says
Aperture probably told you that you had to let them know if your salary increased? If they did, did they say that you had to tell them if your wife’s salary increased?
Lee says
No, i do not recall they told me i had to advise them if my wife received a pay increase….
Sara (Debt Camel) says
Then I suggest you don’t. If you are asked for your wife’s payslips / P60 at your annual review, say she isn’t prepared to share them with you.
Lee says
Okay, thanks, i did however recently realise i seemed to be clearing an extra £40pm take home, upon review i found out i was given a payrise back in May i knew nothing about, so wanting to do the right thing, i have logged onto Apertures client portal yesterday to see if there was anywhere to add/notify this extra income, I found an I&E button clicked it and it triggered a full on I&E and a request for 3 months payslips, a P60 and my last bank statement, i have provided all the detail but seems a bit full on for a £40 take home benefit (have i just completed my 1st/Feb20 annual review early??), i did however take the opportunity to add my wife’s true outgoing monthly figure for her debt commitments, as when setting up the IVA originally they only took into account part of what she pays out monthly to her own creditors despite taking into account her full salary….however the net result of the “review” now suggests my surplus for IVA contributions had actually decreased, should they now contact me and advise a reduction on payments?
Sara (Debt Camel) says
I can’t really guess at what they will do. If you feel what they do is unfair, you should ask for an explanation and complain if it still doesn’t seem right.
Kim says
Hello,
I’ve recently recieved a personal injury compensation payout for a car accident I was in whilst at work (£1,350). I really need to keep this as I need to replace fence panels in my garden that have fell down and desperately need a new bed and mattress. Aswell as that, my son has had a growth spurt and nothing fits him and my ground rent on my property is due in march next year to which I have nothing saved to pay this. Will i be able to keep the money? It’s all personal injury and no loss of earnings at all. I’m currently with creditfix.
Many thanks
Sara (Debt Camel) says
It sounds as though this money is all for “pain and suffering”, not loss of earnings. So it should not count as a windfall that has to be paid into your IVA. Talk to Creditfix who should confirm this.
Ana Cristina says
Hi,
I have an approved IVA, I pay £150 per month for 5 years. 2 months later I will get married and I would like to know if the income of my future husband will be calculated in my IVA? When I applied for IVA, I declared that all the expenses of the house are paid in half, but I did not say that the person with whom I share the expenses is my future husband. What do you advise me to do? They will see that I change my name and they will understand that I got married. The expenses of the house will be the same, but do not know to what extent they will consider the salary of my partner?
Sara (Debt Camel) says
Being married makes no difference to your debts, your finances or your IVA. Your husband is not legally responsible for paying your debts.
If this makes your nervous, of course there is no reason why you have to change your name when you get married!
Ana Cristina says
I don’t want to lie, and I want to know what I have to do.
Do I have to inform the supervisor immediately? Will they recalculate the amount of payment based on both incomes? I do not think my husband will be very happy to hear that he has to send payslips, bank statements, etc. Am I obliged to send proof for his income?
Thank you
Sara (Debt Camel) says
It’s not lying, you don’t have to tell your supervisor if you have got married, only if something changes in your finances. If you are both still paying half of the bills, what has changed?
You can just tell your supervisor you have got married, your finances remain just as before but you would now like your details to be changed to Mrs Darcy or whatever. Your husband doesn’t have to supply proof of income – if he won’t, then the IVA will proceed on the basis that bills are being split 50/50.
Stuart says
If I choose an iva they can reduce my payments by 500 a month am I allowed to keep this money that the iva saves me ???? What happens during the yearly review ???
Sara (Debt Camel) says
So you are repaying your debts at the moment and it’s 500 more than your IVA payment will be? What will the IVA payment be?
Carlos says
Hello, there are expenses that I do not do every month, for example, expenses with medicines, expenses with clothes, maintenance of the house, dentists and, sometimes, there are expenses that I do not have as proof. Always in the review, there are several expenses and other expenses. My question is this: how were the expenses that I have no proof of?
Sara (Debt Camel) says
where expenses don’t happen every month, you will be able to see what was spent in total the previous year? Was this more or less than what was in your IVA budget? If it was more, do you think it will be at the same level next year?
Your bank statements will have showed cash withdrawals. They would have been used to cover other expenses?
I am not sure if you have a problem right now, in which case could you be more specific, or you are just feeling uncomfortable about the process that might happen?
Anthony says
Hello I was just wanting to know when my 1st iva review is due will credit fix start noseying about on my online banking and look further back than the 12 months and look at my banking prior to the iva starting. I dont really want them to do that as some of my info is private and nothing to do with them. Thanks
Sara (Debt Camel) says
Did they not look at your bank statements or online banking before your IVA started?
Antony says
No I just had to screenshot my account and send that. What I mean is in the year before my iva started my account was a mess with irresponsible stuff including some gambling payments etc so I don’t really want them going further back than they should and see this. They should only be looking at the 12 months since my iva started and not prior. It’s just a bit worrying for me with my 1st review due in june. I’m in 2 minds whether to go ahead and let them go through my online banking or just refuse and send statements and pay slips in. Thanks
Sara (Debt Camel) says
Well it’s up to you. You don’t have to allow Open banking access. But I am not sure why Creditfix would waste time and effort in looking at your affairs before the IVA… their main interest us getting your IVA to. Continue so they get paid their fees.
Antony says
Thankyou for your reply Sara,you have put my mind at rest a bit now. I guess once the 1st review is done I will feel alot better aswell. Regards Anthony
Daniel says
Hi my yearly review is due and I’ve only got 1 year left on my Iva.
Will it fail if I don’t supply my yearly review?
Sara (Debt Camel) says
yes.
Your IVA firm may also have the right to make you bankrupt. This is rarely done but if the IVA firm suspects you are concealing something it is possible.
Why don’t you want to supply the information?
Kenneth says
Hi,
We are entering the final year of our 6 year IVA. When we started, my monthly income was £2,100, with a contribution after expenses of approximately £100 towards the IVA. As the years have passed, my salary has increased (both in the occasional payrise and the amount of overtime I do). Also, our expenses have increased in a similar fashion, so that our annual I+E has kept the contributions at roughly the same level since we started 5 years ago.
Suddenly, we’ve encountered a problem. We submitted our annual I+E last week and were told that after calculations, we had an increase in our disposable income of £30, which increased our contribution by £15, which is fine. However, in addition, we were told that because the three months of payslips showed my monthly salary as approx £2,900/£2,650/£2,700 we were obliged to pay a lump sum of over £1,300 (or monthly repayments) – 50% of the remainder over 10% – as they were higher than the original £2,100. Is this correct?
My annual I+E has shown my yearly increase in salary (mainly overtime) – last year, the three payslips may have been something like £2,750/£2,600/£2,550 for example – plus yearly increase in expenses, so our disposable income has remained roughly the same. Are they correct to now refer to the original salary stated when the IVA started 5 years ago or should it be based on my previously submitted salary of last year?
Apologies for the long post!
Thanks.
Sara (Debt Camel) says
I think it should be your salary at the last annual review. point out to them that your annual reviews have shown no increased disposable income.
Kenneth says
Thanks Sara, for your reply. I still find it odd why this has suddenly become an issue after 5 years? I’m tempted to just let it lie as I’m in my final year and just want to get it finished. Also, if they rake through my previous years’ I+E, they might compare each year’s salary to the original £2,100 and I might be told I owe even more! I’m still baffled how it apparently makes sense to compare each year’s I+E to the monthly income when the IVA was originally set up, rather than comparing it to the previous year.