Bonuses etc

[vimto1029]

Hi, just reading through my iva paperwork and it says 'where I receive as hoc additional income I will be entitled to retain the first 10% and introduce 50% of the balance'. What exactly does this mean? All this technical wording confuses me!! Thanks

[kallis3]

Hi vimto,

It means that you retain 10% over and above your basic pay and then the rest is split 50/50 with your creditors.

[vimto1029]

Thanks Kallis but I'm still confused! Say for example I earnt £20k a year and had an annual bonus of 7.5% of my salary paid once a year would I get to keep it all as its less than 10% of my annual salary or would I only get to keep 10% of my monthly salary? Thanks again for your comments, its all very much appreciated

[Foggy]

Hi Vimto -- it's 10% of your usual monthly salary, so to really benefit you'd need to try to arrange to have the bonus paid over in monthly installments.

[vimto1029]

Thanks for the comments people..just reading other peoples posts and some say you will be able to retain a sum equivalent to 10% of your usual basic salary, plus 50% of the difference?

[Foggy]

Hi again Vimto. You need to check your proposal, as some do have a straight 50/50 split. But, if yours is 10/50/50, it is based on MONTHLY figures.

So you get to retain the equivalent of 10% of your basic monthly declared salary (the figure in your proposal or chairman's report), then the balance is split 50/ 50.

[vimto1029]

Thanks for all your comments, I think its just the wording that confuses me in that 'i will be entitled to retain the first 10% and introduce 50% of the balance'. Now i'm no mathematician but if i keep 10% and then give them 50% of whats left..what happens to the other 50% of whats left? Sorry if i appear dumb..i am still new to all this!

[Foggy]

You retain 10% (odd wording there, normally its the amount equivalent to 10% of your usual monthly take home), you pay 50% of what's left to the IVA ... then you ALSO get to keep the remaining 50% share

[vimto1029]

Really? Wow! Thanks That would be great if thats how it works..me and my family have pretty much gone without any clothes or anything for 2 years apart from what parents have kindly bought so if I do get to keep some of it it means at least I can ditch my winter clothes for something a bit more suitable for the season!
Thanks for the post Foggy!

[Foggy]

Its the old carrot and stick ploy Vimto -- if you didn't get to keep any, you wouldn't do the overtime .... no overtime = no extra money for the creditors .... half of something is better than all of nothing, as they say

[vimto1029]

It sure is Foggy! Was really worried about only getting 10% after having to meet objectives etc for the last 12 months! Now I can breathe a little easier!

[Isis Black]

i cant find the info we got about this from Grant Thornton :-s so not sure what their rules are on windfalls and overtime

[kallis3]

Hi,

Do you have your chairmans report? It should be on there.

Otherwise give GT a call and ask them to let you know where you stand.

[Charlotte]

Hi All I am entering year 3 of my IVA.. I have never missed a payment and have always communicated promptly when required to. However I am currently having a few issues with my IVA provider. I have started earning performance related bonus each month (Probably wont last) However my IP has said that I need to pay them 50% of anything earned over our combined monthly income. OK so for arguments sake I earn my full potential bonus each month and pay them the required 50% that means I will be overpaying my original debt amount not the amount agreed to pay by over 10K ??? Can they actually do this?

[Shining]

Hi Charlotte and welcome to the forum, I have just commented on another post you've made.

If the original debt is paid in full and IP fees etc too the IVA concludes x