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Me again!
Does the 50% bonus/overtime rule apply to a payrise?
If one of us had a promotion or moved to a better paid job, are we expected to pay the whole increase into the IVA, or is 50% of the increase typical? Does the IP negotiate this at the meeting? (This is assuming no increase in expenditure through extra travel etc)
Thanks
Helen

Hello again:)

It is a standard term that the Supervisor will review your situation every year, and in the event that you are able to increase the level of payments because of having received a rise in income, then the level of payments will increase to a level mutually agreed by you and the Supervisor.

The Supervisor is unlikely to want to take all your extra money, fairness dictates that you should be left some incentive to improve your situation, but you should be aware that this term would be incorporated into your proposal.

A payrise that merely covers an annual cost of living increase will not result in an increase in the level of payments to go towards the IVA.

Kind regards,




Julia Simavi

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Hi
Just to add that this is an area that has caused alot of confusion as it can vary from one IP to another and from one IVA agreement to another.
Julia is right there should be an incentive to better yourself and move on and a simple 50/50 of payrises would be fair.However as Julia has implied the whole of the extra money could go into your IVA so make sure that you speak with your IP and clarify this point.
Regards

Andy Davie
IVA.co.uk Spokesperson

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Helen

In my proposals - NO! But you will be reviewed at the end of each year, and if the IP feels that you can afford to increase your payments generally, they will discuss this with you at that time.

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

Hi Helen as said I think it varies between Ip's . My proposal says 50% of all rises in income.

Ang