50% Overtime Clause

[andrewgoodman121]

Why do so many people on the forum constantly sound off about the 50% Overtime clause in there IVA's.

What they fail to realise is that when you have been lucky enough to get accepted for an IVA, you are given certain benefits such as

1. No More Letters or Correspondence from Creditors
2. Your Debt does not accrue any interest as it is frozen
3. 60 months and Debt Freedom
4. Keep your House if your a Homeowner

and finally the BIGGEST POINT!!! that they all seem to not realise
is that a proportion of the Debt is WRITTEN OFF!!.

It really is a small price to pay when if you did get to do overtime Pre-IVA then the extra 50% would go on interest to your creditors if you were still paying them off most probably anyway.

An IVA is far less restrictive and not nearly as much stigma attached
than Bankruptcy.

It is something you will have to grind out.

IF PEOPLE FIND PAYING AN IVA TOUGH GOING, HOW DID PEOPLE MANAGE IF THEY HAD HUGE LOANS AND CREDIT CARDS.

[OPTIMIST12]

I agree 100% with the above post. It is easy to forget just how desperate things were before we all entered into our IVAs and to forget that our responsibilities to our Creditors remain throughout.

The 50% Overtime clause is perfectly fair - and newer starters have the even more generous 10 + 50 Allowance!!! Lucky people!!!!

It is always so disappointing when people approach their IVA with a "how much can I write off - I dont care about my debts and responsibilities" mindset rather than the more correct - "this is a great opportunity - I will do my best to repay what I can" approach.

IVAs are a really great opportunity to get back on track. But only if people enter them with determination, openness, and - above all - honesty.

[freelili]

There is potential for a bond here, with you two. In the forum sense I mean, like minded match.

LAST SENTENCE FIRST POST.... WE DIDNT, HENCE.. WE ARE HERE..

[luluj]

I am in my IVA to ensure we pay back all that we can in the five year period - if that means I have no holiday, or live without things so be it! I borrowed and spent the money in good faith and now after admitting my errors I am keen to put things right!

The 50% overtime clause I think is a god send - it is this that allows us to have weekends camping, or a meal out and I am very grateful for this!

Those that think it is unfair, I am sorry but maybe an IVA is not right for them !

[andrewgoodman121]

Hi Optimist,

I am 6 months into my IVA and i do sometimes get the odd bit of overtime and it comes in handy.
i also get the 10% you keep then 50% thereafter
on my IVA.
I can't complain about the 50% clause as if i didn't get an APPROVED!! IVA i would have had to declare myself either Bankrupt or enter a Never- Ending DMP.

I know that some people on the Forum have chosen Bankruptcy to solve all of their issues.
I did not Fancy all the Stigma that comes along with Bankruptcy which could affect me losing my job.

I entered an IVA because it was

1. Totally Private and Confidential
2. I am fully employed and could afford the repayments
3. The creditors would at least get a proportion of the debt back
4. No more Correspondence or Hassling Phone Calls
5. 37% Debt Write Off

We IVA'ers get good months and sometimes the occasional Bad months that just the run of the mill.

The Trick of an IVA is to KEEP UP THE REPAYMENTS!!

BUT YOU CAN'T BORROW ANYMORE!!!!!

If you can do this for 60 months then you will SUCCEED!!!

[freelili]

Good luck andrew, you seem to have it all figured out. I am sure you will get there.

[OPTIMIST12]

Andrew -

I totally agree. An IVA is bound to have good months and bad.

BUT if you approach it with determination and honesty throughout then noone can expect any more once the creditors and debtor have agreed a forward path. If we succeed after 60 months then that is brilliant - if we fail for some reason then at least we have done our best and know that we have tried our hardest to put things right.

[elizabethr]

I haven't got my IVA finalised yet but I too feel very much like the previous posts. I don't know if I am "missing" something but as I was always having to rob Peter to pay Paul on my credit cards, the budget I have set at the moment (if it all goes though ok) looks pretty rosy compared to what life has been like. I sometimes get worried that I am not too phased by it - if you know what I mean. I am sure they will be down days and the biggest obstacle for me is that my youngest probably has to do without some of the things that her friends have but I will try to "rob" the housekeeping budget if I can from time to time. The biggest thing for me will be no stress - having got rid of the phone calls and bills coming in.