www.iva.co.uk

How are permanent pay rises / promotions handled within an IVA. Is it a 50/50 split prior to review and beyond until end of IVA or do they take 100% of it?

Should just be 50/50.

Permanent payrises have, until recently, been treated in a manner which allowed the debtor to retain the whole of the increase until the next annual review, after which the regular IVA payment increased by 50% of the net increase in pay. On paper that is still the case, however as the conditions merely say 'until the next review', some IPs are carrying out interim reviews to capture the increase early. But, whenever implimented, you get to get 50% of the increase, assuming you have the usual clauses.

Thanks Kallis and Foggy.