windfalls and such...

[Spiderman]

Hi,
This is my first post. My wife and I are considering an IVA and we were wondering how bonuses and windfalls work. Do these go towards paying off the newly calculated debt - thereby reducing the overall term? Or do they go towards the excess that the creditors would not have gotten their hands on otherwise? Do the same rules apply if a bonus is an unexpected one - do I have to declare this to the IP immediately?
Cheers.

[scaredkez]

hello welcome to the forum, it all depends on what is in your proposal , the usual clause is 50% of any overtime and bonus or windfall although some have the provision the first £500 is theirs,it does not reduce the overall term as it is in the ip's interest to return as much as possible to the creditor from the debtor, if you don't declare what you have received you could be in breach of contract and possibly found out at your reviews as the ip requests your bank statements, an iva is not away of hiding any surplus cash that you may obtain, it is a long hard struggle for 5 yrs for those willing to pay as much back as possible
kerri

another thing to add is although you may be considering an iva it is up to your creditors if they allow one you need to have 75% of the vote to be accepted, are you happy that you know what an iva entails?


Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Spiderman]

Thanks scaredkez,
I didn't mean I would deliberately try to pull the wool over the eyes of my IP, just wondered what the procedure would be - it seems to be the same as with an expected bonus. We do understand what the IVA entails and realise from bitter experience that it's preferable to having a string of defaults on the credit file. From what I understand, 75% agreement shouldn't be too difficult for our creditors considering the alternative - that they get b***** all!!

[scaredkez]

sorry if you thought i suggested that you would pull the wool over the eyes of the ip but you would be surprised at how many who thought they could would! yes an iva is a great repayment vehicle of paying as much back as poss, but lots of people enter the situation without full knowledge of what an iva entails only to fail a few months down the line, the key is to read up and learn, unfortunately by the time your iva goes through there will be defaults on your credit file and an iva stays there for 5 yrs, i am glad you understand what it means and i wish you all the best for your iva acceptance, any help you need just post away.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[mikebdomain]

Kerrie – excellent advice, but if I may just correct one little thing, an IVA stays on your credit report for 6 years from the start of the IVA.

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[scaredkez]

yes mike you are right i was getting mixed up with iva term
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/