www.iva.co.uk

Hi i'm currently going into my 4th year of my IVA i have started a new role within my company which involves a good bonus but i'm aware that i will have to give credit fix a % with this bonus i only receive it end of the tax year its going to be around £9,000 before deductions so:

do i get to keep 10% then i split it 50/50 with credit fix? is this worked out after deductions?

Thanks for the help!

Bonus payments are usually treated in the same way as overtime in that you keep an amount equivalent to 10% of the agreed monthly income and split the rest 50/50, assuming you have the usual clauses ( some are straight 50/50).

The figures are worked out on the net amount that actually hits your pocket.

do you have a family member or friend who could gift you money to make a F&F offer? That's what i did when i was offered a promotion.

hard to say without knowing your circumstances and stuff but for e.g you were paying £300 a month for either the next year or 2 years depending on your IVA. you'd be looking at paying £3600 or £7200, if a family member could lend you the money for example to make a full and final offer and finish your IVA when you got ur bonus you could pay the family member back and it would save you the rest of your IVA payments, might be something worth looking at if you have a family member who could do that.

with the 10% is that just on thats month of the wage or 10% on my yearly wage?


I currently have around £7,614 left to pay in payments when offering a settlement would it have to be the full amount?

Fri Mar 13, 2020 7:17 amsuperted wrote:

with the 10% is that just on thats month of the wage or 10% on my yearly wage?


I currently have around £7,614 left to pay in payments when offering a settlement would it have to be the full amount?

The bonus is accounted for in the month (s) that you get it paid and the 10% is on the monthly income amount, although for a bonus of the magnitude mentioned in the first post the IP might negotiate, as far as he / she is able.
A full and final offer can be reduced to reflect savings in time and admin, but, of course, the higher the better chances of acceptance.

Thanks Foggy does it take long to apply for a final settlement? and for it all to go through?

Also I have £7,614 left to pay in payments with my bonus after tax I should take home around £6,000 if I ask a family member to settle my IVA what's the chances of them accepting £6,000?

Also if I went ahead and this was rejected could I make an another offer in the future?

Thanks.

Superted - a F&F offer usually takes 2 months or so to get through, sometimes 3 and, now and again, a bit less than 2.

The amount the remaining payments can be reduced by, for the offer, depends on the time left -- the longer you are 'lopping off' the timescale, the more they save. £6k sounds reasonable against the remaining £7.6k. assuming a decent time saving.

If the offer is refused you can always make another, down the line, or even increase the one currently on the table, if possible. But remember such offers are supposed to be the best you can make ... so you would, in reality, only get the chance to improve the offer once before the creditors felt you were holding back funds. This refers to making an improved offer whilst still on the table ----- If you were to go away and make a fresh offer later, this could be put down to improved circumstances, rather than holding back, so should be considered afresh.

sounds like its worth a go! so by me paying it off early creditfix save on fees??

Fri Mar 13, 2020 11:26 amsuperted wrote:

sounds like its worth a go! so by me paying it off early creditfix save on fees??

To an extent --- they still get their percentage of the money you pay in but have to do far less work for it. Creditors benefit in that they do not have to pay their own staff or use resources for time spent fiddling with small dividend payments every few months.

If I put in a formal offer what happens in the meantime do I continue paying the monthly contribution?

You should do - ask them to reduce your offer by the number of payments you have made since making the offer.

Personally I would allow, say, two more payments while they are processing the offer and say that payments made after a certain date will be deducted from the lump sum ---- this makes the offer appear more attractive and also sets a deadline to discourage stalling to collect more.

Hi all my auntie made a £6,000 offer to settle my IVA today there's around £7,614 left in payments... fingers crossed.....

Hopefully!