www.iva.co.uk

My partner works for a local authority and she has spent the past 2 years waiting for them to carrying out a review of her job due to equal pay claims. They have now offered her Backdated pay (£15000) with additional compensation + interest (£3500), in total £18500 after tax and NI. This money is in effect wages that she would have earned over 5 years,I was under the impression on reading several forum questions and my own interpretation of her IVA that this could come under the 10/50/50 ruling as its actual wages earned but I have heard from the admin staff of our IVA Company today that our supervisor says all is payable into the IVA,we have asked for clarification but in the meantime My question is what are other peoples view on this situation.

Hi Idc! I would read your chairman's report and see what it says re bonus or windfalls etc! I know this is backdated wages and you may have to pay it in! Could you offer it as full and final? Good luck

Hi Idc. Welcome to the Forum. Why not ask whether it can be used as a full and final offer? It won't cost anything to ask. Best of luck!

Hi

I think it will be seen as a windfall and payable into your IVA I'm afraid

The creditor thinking behind that is that had you received the correct pay you may have used less credit prior to the IVA.

There may be an arguement for the 10% and 50/50 rule for the period of time that you have been in an IVA.

Regards

I agree entirely with Andy and I am sure your IP can reach an agreeable settlement perhaps by a full and final as suggested by the others. You could give up your claim to any of the money in return for creitors closing down the IVA. A sensible compromise.

I assume this is an interlocking IVA. How long have you been in the IVA and was your partner pursuing the backdated pay claim prior to the IVA? If so this was an asset at the time of the IVA and should have been dealt with in the proposals. If it wasnt then it is a potential irregularity that your supervisor will have to deal with. I agree with Andy (and the creditor logic) this is potentially a windfall in relation to the pay earned pre-IVA, but there is an argument that the element of the claim in relation to any period after the IVA was accepted could be dealt with under the 10/50/50 (as you call it) rule.

I think that your partner may be a client of my firm, in which case I concur with the advice provided by my fellow IP. We were not aware of the claim when your partner's proposals were being presented, hence why this was not specifically addressed at the time. I don't see any argument for the money being dealt with under the 10%/50/50 rule I am afraid

Yes Melanie she is currently with yourselves and in good hands may I add. Were abit gutted that this is seen as a asset as weve seen people on here with exactly the same circumstances and been told that as it wages its the 10/50/50 but thats a discussion I need to have with our supervisor and not on this Forum once im back home.
Again thanks all for your replies.

Hi!

It is easy to draw conclusions about how similar circumstances are on here as we have limited information.

Mel's team have always come across as being empathetic with their clients and I'm sure are adhering to the proposal fairly.

IVAs are all about deferred gratification! But I understand it must be difficult to be parted from all that money.

Good luck and let us know how you get on x

i would have thought this would have been classed as an earned income as she was paid wrong in the first place? maybe wrong

I don't know enough about the technicalities of what a windfall is!

I would have thought it wouldn't be income in the same way as the salary you agree in your contract...so in that sense it is extra. In that sense you are lucky to be getting it and I always associate windfalls with luck...not very technical I know LOL x

I really think this is definitely one for the IP to deal with direct. We will all have our own interpretations and I would hate to give false hope to IDC and his partner.