Help windfall clause on our IVA proposal please?

[Becks]

Hi we're in the process of taking out an iva, on the proposal it has a 'windfall clause' that states assets, gifts or material sums of money (excluding normal regular income): if I receive...sum of money (over £500) I need to inform the supervisor

My question is what about bonuses, my husband asked at our meeting with the iva company and we were told that anything over 10% of usual amount we would have to pass 50% into the IVA but I can't find anywhere on the proposal where it states that.

Can any one offer any advice, I didn't find this till after 5pm so can't ring our iva company till monday

[Rod Newman]

Hi, i'm in the process as well and my understanding is that the 1st 10% of anything over the normal wage I get to keep , then the balance is split 50/50, and that has to be paid within a nominated period (think it's a couple of weeks). As I say i'm still in the early stages so may have got that slightly mixed up

[Becks]

Thanks for the reply, yes that's what we were but it doesn't state that in our proposal so I'm concerned now.

[Rod Newman]

Hmmm, wpould have thought that £500 is a rather large sum to be allowed to keep without sharing.

[Shining]

Mine is anything £500 and over too Rod, hoping for a win of £499 on the lottery one day x

[Rod Newman]

Fantastic Lesley, better still win a few million and collect it in £499 cheques every week until IVA is clear

[Foggy]

Basically they divide income into "earned" (salary, overtime, bonus payments) and unearned ( lottery wins, inheritances etc). You cough up 50% of earned income, over and above your usual base salary ( some proposals allow you to retain the first amount of 10% of earnings, then split the rest 50/50 ). Windfalls are generally dealt with by allowing you to retain the first £500 and handing anything over and above this to the IVA. Again, some proposala will vary, usually regarding the £500 retention.

[Shining]

I agree Foggy all proposals are individual and it's best to refer any windfall to your own proposal/IP for clarification.

Lol @ Rod x

[Becks]

Thanks all this is what I hoped to hear wanting to put 50% of bonus aside for any unexpected expenses.

[Rod Newman]

Ahhh that sounds more like what I remember them telling me now, need to get it in writing (which hopefully wont be too far away)

[luluj]

As others have said hopefully you will have the 50% rule but to be sure make sure you inform your IP of any additional earnings / money as they happen and oay over the amount you owe your creditors as you go - that way you know what is in your account is yours to do what you want with !

[langerbridge]

Mine has £500 Clause & 10% 50/50 for overtime. As others have said it's individual so check paperwork!! My bonus with my company was included in overtime version as it was in same payslip & as under £500 they stood to gain from doing this. However as a nurse my payslips are checked every 6 months & averaged out.

[MelanieGiles]

Ask your IP to use the IVA protocol style for the proposal which makes it very clear that a bonus is dealt with under the 10%/50% rule and is not deemed to be a windfall.