Hi again everyone, i have been asked to given 50% of any overtime i may do each month to my IP, which is more than fine, however i was wondering if it shortened the length of the IVA or it just meant that long term i contributed more to it ????
It will mean that you contribute more to it over the 5 years. It's a standard clause in an IVA these days.
If you work enough overtime that you can manage to pay across 100p in the pound to your creditors in a shorter time, then your IVA will finish earlier.
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
If your IVA proposal had been put forward using the IVA protocol - and this important area should have been fully explained to you at the time you reviwed and signed your proposals - then you would have had the benefit of retaining the first 10% of any additional monies. If your IP is not using the IVA protocol - this could end up in you paying more money to creditors than you need to, depending upon the modification of course.
Actually Melanie not written into the Protocol but left to IP to decide. This will change with the June provision. The first 10% of the usual net take home pay then 50% of the balance comes from the usual TiX modification.
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.
Yes - I've got that wrong before haven't I!!! It is just that we were TiX compliant before being protocol compliant, and left those terms in our standard proposal documents.
A pay rise is different and yes you should tell your IP but usually this is picked up at the annual review and any net increase (after taking into account expenses) is then adjusted in your ongoing monthly contribution. This takes effect from review and is normally not backdated.
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.
Just picked up on this thread
IVA started in april 09 so obviously reviews every april
our company gives annual pay rises normally commencing in may/june probably 3%
so am i reading correctly that the extra money is mine until
next years review if so thats 10/11 months of extra money every year
or do i have to start paying this across straight away
Little bit confusing but could make a big difference
I didn't have to give any of mine over, but it may depend upon what it says in your proposal.
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
If i have an iva my pay will go up substantially from 40k to 70k in year 3. How much will they take of the extra- 50% or 90%. They could end up with the whole lot!
Hi Adam they will take the total increase in salary less any additional expenses you incur. If you salary is likely to rise to such a degree, this may enable you to pay off your IVA early as your total payment should not exceed your original debt + IP fees.
In respone to Melanies comment.
I take it that the recommendation to waive the first 10% will be part of the IVA protocols in June. For those of us who do not have this benefit will we be able to get that included at next review, will it take a moderation or it it just hard cheese?
