www.iva.co.uk

Will 50% of overtime get taken on a monthly or weekly basis ?

hmmm, not very clear is it what I mean exactly. The guy from the IVA called today to say that my partner's IVA had been accepted by the creditors & went on to explain about paying extra if overtime has been worked. He went on to say that overtime up to £150 was safe, my partner could keep that but anything over that had to be split as in 50% would have to be paid as extra. But what we have forgotten is, is that £150 per week or £150 per month that can be disregarded ? TIA.

It sounds as if you have to 10%/50%/50% split. If the £150 represents 10% of his monthly wage, it will be monthly.

Sounds as if your monthly pay is in the region of £1500. So you are allowed to keep 10% and have to split the rest 50 / 50. This will all be calculated on a monthly basis.

Yes, you are correct Foggy, his basic monthly income is around £1500 on a good month. I am just trying to work out how to put aside any overtime per week if working on a monthly basis, if he were paid monthly if would be easy to do. All advice is helpful, thank you [:)]

Should be monthly.......I have to pay it within 14 days of receipt direct to IVA Companies bank.

The 10/50/50 rule is simple.

Normal (Net) Wage with no overtime £1500 (In hand)

You keep first 10% ofany overtime so effectively can keep anything up to £1650.

Anything over £1650 is 50% keeps & 50% to creditors so:

You receive £2000.

Minus £1650 (Net wage plus 10% overtime)

= £350

50/50 split = £175

So total you could keep is £1825.

Hi! Congrats on being accepted! I can only agree with what the others have said x

Thanks Pennyless, that is very clear & I get it, just what makes is difficult is that my other half is paid weekly & it varies hence why its not so easy to work out as dont know how much to save each week. I have done some rough maths & am going to put away a set amount each week hoping that each month I would have put aside enough for this extra payment [:)]
So how does the IVA go about getting this extra payment, do you pay via debit card each month or do they send you a payment book or how is it done ?? Thank you, you guys are really helpful.

Hi we're with payplan and send our payslips in quarterly. They then review them and ask for any payment if any extra has been earnt to be paid over to themselves, via their online website or by awitch over the phone. Congratulations on your acceptance too. Heres hoping your road to becoming debt free is a smooth one for you x

Hi there, Nick, my other half has been with Payplan for a few years now, it was them that put him onto the IVA as he would have been paying Payplan for years & years!
Its a relief now its all sorted even know I realise that there will be hurdles on the way.
So you pay your extra payments to Payplan still & not to your IVA agent ?
Oh well, I am sure they will tell Nick how to pay the extra once it happens. Thanks [:)]

Summer I obtained the details of my IVA Companies bank and now, using Co-Op online banking, I just send the money direct to their bank each month.

I suppose being paid weekly will make it slightly confusing over whethr to pay 4 weekly or per calender month but I'm sure your IP will advise on most easiest and conveniant way to make payments.

Good luck.

I am sure Payplan will have their own method of claculating weekly equivalents ... but my thinking is ... if they have used 1500 monthly x 12 = 18,000 per annum ... divide this by 52 = 346.15 per week.

So I would base the weekly 10/50/50 on anything over 346.15 + 34.61 i.e. 380.76 weekly should then be split 50 / 50 with the IVA.


But ... I could be wrong !!

Thank you Pennyless. I have just been looking around on this forum & am astounded as just how many people have gone into IVA's, its actually a comfort to be able to read people's experiences. I am glad Nick did this now & look forward to a debt free future in 5 / 6 yrs time [:)]

It is a difficult calculation to work out for weekly paid people, so I tend to review this over a three month period when there are always 13 full weeks to work from.

hi all can I just ask, until you get completion cert, are you still bound by terms, ie. overtime clause? Just wondered after you had paid all payments etc