www.iva.co.uk

Just wondering, has anybody any experience with a similar situation?
I'm lucky enough to earn overtime if I want and have no problem with paying half back to creditors etc, however have just had my Annual Income review and in a year our outgoings have increased by almost £200 per month - this is due to mortgage rate rise,picture loan rate rise, fuel etc etc. I presented all the evidence to my IP Supervisor and he has suggested that my payments should remain the same but, as my circumstances have changed considerably,he writes to my creditors suggesting that they adjust or remove the 50% overtime clause to enable me to fund the additional increases we've had from working extra hours. Sounds fair and reasonable to me and least it means that I can keep up normal payments without creditors having to lose out - I just didnt think this would be possible?

I've never heard of it Bev but if your IP has suggested it then maybe they have dealt with this before. Maybe Melanie can give her opinion on this. X

I have done this a few times recentl for different reasons and some are approved and some are rejected.

Alan, is this for the duration of the IVA then or just for a few months? Just interested. X

I have done this for the duration, but you need a very good reason.

Yes I agree re needing a very good reason. I think that maybe my IP thinks it wouldn't be feasible to request they reduce my payments at all, however I need the extra money to cover the bills so he doesnt see me as having much choice. Its not as if the money is being spent on luxuries or holidays abroad, its purely to support the increases in bills, and my IP says that if creditors won't agree then I could end up failing IVA as won't have sufficient money to pay monthly bills. Surely this way they'd still be getting their normal payment? If I don't work overtime they wouldn't get extra anyway?

Hi,

What company are you with. We have the 50% clause in our IVA and when I said we had had some extra expenses, and an increase in bills. we were told we still had to hand over the 50%, which we did not have because had to use it. They have now increased our payments by an extra £19.00 a month. I feel the rules should be standard for everyone, and not some companies allowing help and others not. Obviously this is no way a dig at you. Good for you if this is helping you out.

I don't aggree with the 50% clause at all Bev and if your struggling with they payments don't be afraid to just tell them that and don't be intimidated by creditors..

a few people in here might not agree with me and im by no means an authority figure but take care of yourself and your family first

Hope it works out,
Ryan
x

Thanks Ryan. I don't mind handing over half my overtime and have done for the past year, however if its a case of failing the iva - then the creditors wouldnt get anywhere near as much if I go bankrupt. Surely it makes sense to continue with same re-payment to creditors but work extra hours to meet the shortfall I am currently experiencing?

Hillsy - Im a bit scared to tell you which company Im with in case it jeopardises stuff!! I totally see where your'e coming from and agree with all the rules being the same, however my IP told me that EVERYBODY gets the 50% clause put into their proposal - wether they work overtime or not, and its not standard to remove at all - however if there is a very good reason (and my personal circs have changed incidentally)apparently its something they will consider taking to Creditors. They'd rather try that than have you faill. Anyway, its not definite and it may well come back refused!

Hi Bev,

I can't remember the last time I worked any overtime and my husband is retired, so doesn't do any work at all (other than houswork - better put that in or he won't be happy!), and we both have the 50% clause in our IVA's.

bev

I have to disagree with your IP - i do not have the overtime clause in my IVA and at my recent I/E review my overtime was not taken into consideration and only my basic wage used I am able to keep any overtime monies I receive. I can tell you my payments remained the same my basic pay increase was equal to my increase in expenditure

I think that common sense prevails here to be honest - I strictly observe the uplift clauses in my clients proposals, but also exercise discretion if there are issues of an exceptional nature which means that on occasion clients cannot afford to hand over the additional monies. At the end of the day creditors would much rather have the ongoing contributions, than run the risk of getting nothing just because an uplift payment could not be made. We all know that the cost of living is growing at an alarming rate.