Im 3 months into my IVA now and doing okay, 57 payments to go!!
Anyway...i am with GT and have the 10/50/50 rule on my earnings, this i understand,but my question is this...if i earned £1000 per month, i am allowed £100 per month extra without having to notify my IP.
But if i got a bonus of £1200.00 at the end of the year in Decembers salary would this be classed as £1100 over my monthly wages and would have to pay 50% to my IP or would it be viewed on my annual salary.
For example £12000 annual wages, £1200 bonus (which is 10%)
Hi.
I am with GT as well and as far as I understand it an annual bonus will still be calculated from that months salary although if I am wrong I hope somebody will come along to put me right!
Hi icap9912,
I too have the 10/50/50 rule in my new protocol compliant IVA.
Uplift payment calculations are done on a monthly pay basis, so for the example you are giving, if you clear £1000 per month and you got a bonus of £1200 after tax you would keep the first 10% equal to 10% of a months wage (£100), then the remaining £1100 would be split 50/50 between you and the IVA...
That`s how the rule is applied to my IVA.
Last edited by Goosed on Thu Jun 02, 2011 4:09 pm, edited 1 time in total.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
Hi Harry! The terms do vary from proposal to proposal but 10/50/50 seems to be fairly common. I've not heard of 10/55/45 before but if you are happy with your proposal don't let this put you off. Can I ask who you're with? x
Yes each IVA can be individual - so it really important to look at your own individual proposals - then ask your own IP if you still have any questions regarding individual circumstances
Harry, if you're not alread in your IVA then you can change to another company if you're not happy.
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
I've never seen that combination, but that is not to say that this is not part of your own IVA, as each IVA is unique. At the end of the day it will depend upon what you actually proposed, and whether that was ultimately modified by creditors.
