wife has lost her job.

sandy · Joined: 21 Jun 2007 Posts: 1

hello. this is my first post. i hope you can help us with a question.

my wife and i have an IVA which has been running for 9 months. She has lost her job. My wages have been increased through a pay rise and extra overtime. If we could manage to pay our monthly payment out of my wages does it really matter if she cannot contribute to the monthly payment. the future looks bleak as far as another job goes for her and she could do with staying at home for a while.
thanks.

Cheryl · Posted: Mon Jun 25, 2007 11:37 am Post subject: wife has lost her job.

Hi Sandy,

Thank you for your post, I can advise as follows and hope the information I provide is of help to you: -

When a husband and wife propose separate IVAs, the monthly surplus available to creditors is worked out on the calculation of Total Household Income, less Total Household Expenditure. The monthly surplus which is available is then split to the same percentage as to the percentage that both Husband and Wife earn on a monthly basis.

If your wife was to loose her job during the IVA and you were to receive a pay rise and also overtime, you could in the interim period fund your wife’s IVA whilst she is looking for alternative employment – although this would be at the discretion of your Supervisor.

If the situation is that your wife is not looking to recommence employment, then your wife’s IVA would deemed as failed and creditors would be notified of this and would be free to take whatever course of action that they wish.

In this scenario, the fact that you have received a pay rise as well as additional pay for overtime worked, depending on the clauses in your Proposal and modifications proposed at your meeting of creditors (if applicable) you will have to increase the monthly contributions in your IVA.

In all honesty though, I would suggest that you speak to your Supervisor/Case Handler and ask them to conduct a full review of both proposals, together with the new information that has come to light.

If your IVAs were proposed through ClearDebt and include our Payment Protection Insurance, which was introduced towards the end of last year, then your wife’s IVA contribution payments could possible be made from this whilst looking for alternative employment, meaning that both IVAs could continue to run smoothly and your monthly payments could increase in accordance with your pay rise and overtime.

In the meantime, please feel free to contact me, should you require any further information or wish to discuss the above in more detail.

Kind regards

Cheryl Allen
ClearDebt Limited