www.iva.co.uk

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

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.

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

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.

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?

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.

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!

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

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!

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

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!

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

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.

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?

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