We are just in the process of (hopefully) entering an IVA - the courier is coming to get the paperwork tomorrow. Quick question, I'm self employed and my salary goes up and down. In the coming months I might earn £2K a month for 3 months and then £2,800 the next, £2,600 the following month and then back to £2K for a couple of months etc. My salary for the IVA is £2K as that is generally the minimum. My question is, will I have to pay 100% of the monies over £2k into the IVA each month or will I get to keep the first 10%. Would I tell our IP each month how much extra I had earnt or would this be at the annual review.
Fab site by the way - has really helped us realise we are not alone!
Well done for taking that first step, you seem to be well on the way here.
I'm not sure whether or not your IP will average out your monthly earnings or not. They should go through all this with you though and it will all be in your proposal.
One of the professionals will be here soon to give better advice!
Which company are you using?
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It will depend on how your IP interprets it, just be sure to fully understand how this will be done before entering into an IVA.
My gut feeling is that all income will used meaning higher payments when you earn more and lower payments when you earn less. I do not think that the 10% and 50/50 clause will be applicable to earnings over 2k
Regards
Most self-employed people suffer from peaks and troughs of trading - and this needs to be taken into account when proposing the IVA. In my practice we allow a much longer window for payments to be made, and tend to look at things on a quarterly rather than monthly basis.
Make sure that you meet the IP on a face to face basis, as this is a statutory requirement for people who are self-employed.
HUGE MESS wrote:
We are just in the process of (hopefully) entering an IVA - the courier is coming to get the paperwork tomorrow. Quick question, I'm self employed and my salary goes up and down. In the coming months I might earn £2K a month for 3 months and then £2,800 the next, £2,600 the following month and then back to £2K for a couple of months etc. My salary for the IVA is £2K as that is generally the minimum. My question is, will I have to pay 100% of the monies over £2k into the IVA each month or will I get to keep the first 10%. Would I tell our IP each month how much extra I had earnt or would this be at the annual review.
Fab site by the way - has really helped us realise we are not alone!
All of this information that you have requested here should have been answered by your proposed IP. Who are you going with? Have they suggested a face to face meeting? If not they should have in accordance with insolvency practice.
Most self employed persons have peaks and troughs and overall the average will be the required monthly contribution - but not with a 10% deduction - this only applies generally with overtime and/or bonus.
You might wish to a chat with your proposed IP or speak to another one and give him/her details of all your personal and financial circumstances and particulars.
Visit www.iva.com for reviews on firms and practitioners and select another to have a chat with.
They will give you the appropriate advice and answer all of your queries and it is free.
Let us know how you get on.
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.
We contacted CCCS who suggested that a DMP or IVA would be possible solution. They have put us in touch with Grant Thornton. We opted for the IVA in order to have 5 years of hell instead of 18 years (estimated time to pay DMP)and be able to start to live again. We owe A LOT but only have approx £350 clear on a basic month. In addition to the £350 a month we are likely to have another £8 - 10k in bonus/overtime pay throughout the year between us. If only 50% of this needs to be paid into the IVA the creditors will get a good percantage of their money back. If they ask for more then potentially they could get the lot back.
HUGE MESS wrote:
We contacted CCCS who suggested that a DMP or IVA would be possible solution. They have put us in touch with Grant Thornton. We opted for the IVA in order to have 5 years of hell instead of 18 years (estimated time to pay DMP)and be able to start to live again. We owe A LOT but only have approx £350 clear on a basic month. In addition to the £350 a month we are likely to have another £8 - 10k in bonus/overtime pay throughout the year between us. If only 50% of this needs to be paid into the IVA the creditors will get a good percantage of their money back. If they ask for more then potentially they could get the lot back.
GT are good but have they answered the questions you posted here?
Why not have a chat with another IP or two their advice is free.
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.
