www.iva.co.uk

I received a £300pm payrise after tax, I informed my IVA company who explained the 10% the %0% rule which was fine by me, now after our yearly review we have now lost the 50% of the payrise, is this correct?

Yes - check your proposal, it should explain how things work regarding overtime and pay rises

Are you saying you have lost your 50% of the payrise?if this is so you need to contact your company and explain this,as it is your iva you need to keep a check on it,the iva company will take as much as they can and if you don't challenge their decisions they will take it

Has your I&E altered at all - that might explain it but you do need to check.

Doesnt the 10 % rule applied to overtime - and pay rises are deal usually at the end of the year ? - if this is the case then this sound correct. The the OP should check his own proposal/own IVA company to find out his own position

I believe you are right ginger - payrises are different to bonuses and overtime.

I agree with ginger .. util your annual review then10% 50 50 goes then after the review 50% of your payrise is taken to give creditors a higher return. However ensure any additional expenditure is captured under your review.

My understanding -- and the way my IP's (both) worked a payrise was that I kept it ALL until the annual review. No 10% 50/50 applies as it is irrelevant. After the annual review the pay increase was then taken into account in that 50% of the net increase was payable into the IVA. This is how it is detailed in my agreement, which was 2010 Protocol.

It sounds correct to me but the uplift should be 50% after allowing for any increases in the cost of living and done at the review time.

You say you were fine with the 10/50/50 rule - this is what has now happened and is correct.

You can look at these things negatively, or you can embrace the positive.

For someone seeking the legal protection and all the advantages of an IVA, then it is to be realised that an I.P. will only ask you for what you can realistically afford, i.e income less reasonable outgoings. If the same were applied at annual review time, then all extra would have to go into the pot.

So, someone paying £200 and due to a pay rise affordability rises to £400, the payment rises only to £300. The debtor is clearly better off, as are creditors. It seems like a very fair deal to me, and the bonus/overtime rule is another one that works in a debtors favour. You will always be better off in an IVA by being better off, but you do have to meet creditors halfway.

Hope that makes sense.

Regards.