Should your income (on I&E review) be based on Basic & Overtime total earned in last 52 weeks if overtime is not regular & we have paid 50% of any additional surplus into agreement in the last year (on top of regular monthly payment?
No Dawn it shouldn't, I know some companies tend to take an average if it appears overtime is occurring regularly every month but thankfully my IP is wise enough to understand that any pay that is NOT GUARANTEED could stop at any time and therefore should not be taken into account when working out your IVA payments.
thanks lem - i thought not, on our review our payments were increased by >£300 per month and we would never meet the monthly payment if overtime was not forthcoming. Our IP disagreed and it is now going back to the creditors for review (been in IVA since July 2010 and basic figure has always been used previously in I&E)
I strongly agree that basic wages should only be used although I am aware of some companies that do use an average of overtime but I personally think that this is very dangerous.
I cant understand why they are doing this when we are coming into our 3rd year and the previous I&E reviews have worked out with our 'basic' salaries. Also, this was agreed in our initial proposal.
Our IP has said the only way forward is to go back to the creditors - we are in awaiting IP to put report together for us to review.
Dont know where we are going to fund the extra £340 per month when there is no overtime - and we would never know what our set monthly payment would be [V]
Hope you get sorted soon. It annoys me enough to pay over the overtime when hubby works soo hard and we never see him to help us have a few treats / build up a contingency fund but to use it as a regular income is shocking. Good luck
I had the same problem in my 4th year. My overtime was never taken into account when I did my I&E (i didn't have the 50/50 clause) but then they decided that they would increase my payments by 150% for the final year as I had regular overtime even though this was never guaranteed. I thought this was strange as they had never increased it over the 4 years and they were unwilling to budge on the increase.
We had this problem after 1st year review and our payments were increased by £500 per month to £1383, then that year my husband did not have any overtime and they reduced back to the original payments at the next review. I might add we did not get the 1st review and request for the extra until we had been in the IVA for 19 months, so my logic was well we had over earned for those 7 months as well
I quote from the person I spoke to at BE " well you have had the money what have you been doing holidaying abroad every month"
that was way back in 2007 - 2008. I was very upset at the time but did not know who I could speak to about it.
ITS OVER WE ARE FINALLY DEBT FREE, CERTIFICATE ARRIVED
Its all sorted. Our IP has agreed to use our basic and has revised our I&E to reflect this - we have now had our monthly payments reduced from last review (as our expenditure has increased and we have not had pay rise in line with this).
We have also agreed to pay in 60% of ALL overtime earned as in our first year we accrued arrears in our additional income (while settling in) and dont want to extend our IVA Term, in the 2nd yr we accrued no arrears.
Thanks for all your advise.
