Additional Income

[snoogle]

Hi All

I have the follwing modifications in my IVA which were approved. I work on a bonus scheme and come April may recieve around a £6000 bonus will I be able to keep 50% of it? This is not a set amount and is directly realted to how a new business venture I manage performs in terms of operating profit. (I get 10% of OP over and above 10k)

"A full review of your income and expenditure will be undertaken annually. This must include a copy of the debtors P60 together with payslips for the three moths prior to the review. The supervisor will determine whether increased contributions can be made and any increase must commence in the month following the review. In addition to proposed monthly contributions the debtor will be solely responsible for paying 50% of any addtional income above the quoted proposal. These payments do not need to be paid monthly provided the total amount is paid before each anniversary."

Also there is a clause that says:

"Should the debtor recieve any windfall, asset or inheritance during the course of the arrangement which would be considered after aquired property within the meaning of section 307 of the insolvency act 1986 it must be immediately paid or transferred to the superviosr up until the value necessary to pay 100p in the £ to creditors"

I ask the question as I recently took on a much more challenging role at work where my only addtional remuneration to that which I got previously is the bonus scheme.

Also (sorry this may cancel out the above question) .....my mother may be willing to offer a full and final settlement sum to my creditors in December. I am paying them £0.46 in the £ back in my IVA and come December I will be 10 months in with £32900 left to pay. It's unlikely she will be able cover that in it's entirety but in peoples experience what would be a realistic amount to offer?

Thanks as always for your advice.

[BlueShoes]

Hi Snoogle
I'm not sure if bonus payments count as a windfall, or as overtime, but I'm sure Melanie, one of the very knowledgeable forum experts will be along later to answer that one for you.
Let's hope it is the latter, then you only have to part with 50% of it!
Blue

[accgroup]

Hi Snoogle

I would say that a performance related bonus scheme would come under the additional income referred to in the first modification and therefore 50% of it should be paid into the IVA.

However, I would advise you to speak to your IP for confirmation of how they would deal with this.

Hope this helps

Jane Finch
Insolvency Practitioner

AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[MelanieGiles]

I agree - and if your mother can lend you a lump sum to clear the IVA this is certainly worth discussing with your IP.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

I would read the clause as you having to put 50% of your bonus money towards your IVA.

Even an offer slightly lower than the amount outstanding could possibly be accepted as this might be offset by the reduced costs as the IP will not have to manage the agreement for its duration.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva experts]

Your I.P would be the best way forward as they are the ones who know the specific terms and conditions of your IVA case, I suggest you give them a call like other experts above have mentioned.

Best Regards. IVA Experts