I went for an interview last week for a second job, mainly to make things easier while in IVA, as it is a struggle at times. But now thinking is this the right thing to do as the more I earn I suppose the more I have to hand over to my creditors, therefore not making life easier in the end. My salary various each week, some weeks could earn £75.00, another week £180.00, this is where it makes life difficult. If I was to say earn an extra £200.00 per month would that all have to be paid into the IVA. Which I would not mind so much if I thought it was going to reduce the amount quicker. Our original debt was £38,000, paying back £266.00 per month for 60 months making a total of £15960.00. If I paid the extra £200.00 per month over each month, would we still pay back the £15960.00 or more, as in this case it does not seem worth slogging my guts out and not getting any benefit from it at all. My ultimate goal would be to offer a full and final early, as I want to get on with my life. So say if I paid 12 months extra at £200.00 that makes £2400 plus what I would of already paid £7714.00 = £10114.00 could I then make a full and final offer of around £3,500.00, hope you understand what I am trying to say waffling a bit, or am I living in cloud cuckoo land and this would be totally impossible.
Interesting post and certainly something for me to have a think about.
This is an issue (2nd Job) either to make life more bearable in the expenditure stakes or to help conclude the IVA earlier, which will be discussed at the technical Sub Committee meeting of the IVA Standing Committee meeting on Tuesday.
I acknowledge your points - so watch this space.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi
Surely David a second jobs income should be split 50/50, after any extra expenses[travel, child minding etc] ?
This way the debtor has an incentive to work extra and the creditors receive a higher dividend. A win win situation for all
Regards
It does depend upon the terms of the original IVA agreement - but the 50% argument is strong as there is absolutely no incentive for someone to perform a second job without any benefit to themselves.
Agreed Andy and Melanie but my proposition might be gathering momentum and find favour with creditor representatives!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Still wrestling it in my mind - it is the same position with people doing lots of overtime or if they are able to and to account fairly to both themselves, their families and their creditors.
Overall I am more inclined to give the debtor more of this sort of "extra" income for him/herself.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I must admit that I wouldn't work a second job if I thought that all of my income was going to be lost. 50% is fine, but I wouldn't work all the hours that god sends if I wasn't going to gain a little bit from it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for all your comments, I am glad you agree that I should benefit from some of the money, or I would not bother doing it for nothing. What do you think about it reducing my debt though would I have to pay more than the agreed amount over five years of £15960.00
I have a similar situation my other half has 2 jobs.
I have had to prove she did not benefit from the debt accumulated.
They then have increased her personal expenditure by 50% of the total amount earned.
However again written into the proposal is the fact if she loses that job the payments are reduced by the total amount
Hi
The trouble is that you still owe the whole debt, in your case florida holiday 32k, less dividends paid by your IP until the end of your IVA so any extra payments do not reduce the lengh of your IVA but simply increase the dividend to your creditors
Regards
