www.iva.co.uk

Hi All
Just a question that I would like to ask. I am currently in an IVA but do not have the 50% overtime clause. However due to workload increasing I have had to do overtime this year and the amount varies each month but it averages out at about 15 hours a month.
My IP has said that I can keep this money every month and it will be reviewed at the end of the year as to wether my payments should increase. My question is if at the review I can prove that my expenses have gone up for example petrol and energy bills and I have used this overtime money to cover these expenses will my IVA payment increase? I understand that any disposable income needs to be paid into the IVA but as I am using this money to live I do not see how it can classed as disposable income but wanted to have your views.

Hi
Well if your expenses have increased and are fair then you should not have to pay any extra into your IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

You will have to look carefully at the IVA proposal to see what it says here, however, if you can show to your IP that your costs have increased genuinely due to factors outside your control, then I think that they will factor that in together with your earnings increases to determine whether you should be paying more.

It would be unreasonable for an IP at an annual review to set your payments at a level that were obviously unmanageable.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

Thank you for your replies.
I just have antoher question. My IVA started in June 2007 and I received a bouns at work of £620 before tax at work in October 2007. I advised my IP of this and again he said that as I dont have a bouns clause I can keep it and it will be reviewed at the annual review. Is this right as I remember someone mentioning that a bouns should be classed as a windfall. Is this correct and should it have been handed over? I think after tax I had about £450 from this bouns and as I say I have no bouns clause in my agreement. I am worried that at the annual review the IP will say you owe us this money after they said I can keep it? Any advice??

Hi
It's unusual to be able to keep both OT and bonus,again check your chairmans report.Have you something in writing from your IP stating that you can keep your full bonus ?

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Hi I have the same problem as I work shifts and I earn alot in over time pay. I explained this to my IP and he said as I dont have the 50% mod on my IVA I can keep 100% of it including my annual bonus.
As the conversation went on he said he was only interested in my basic salary as overtime/shift rate and bonus arnt guaranteed so he couldnt expect me to make higher payments every month.

Hi Andy
I have checked the report and it mentions nothing about overtime and bouns, It mentions about windfalls and should I receive any windfall deemed after acquired property within the meaning of section 307 of the insolvency act 1986. it must be paid or transferred to the supervisor. Would this inlcude my bouns?? If so I guess I have been misadvised and may have to pay this back. What do you think?
I do not have anything in writing regarding keeping the bouns. A little worried now as I will not be able to find that sort of money should I have to pay it back.

Hi
A bonus is not a windfall so you should be fine.
Try to get answers in writing as you never know when you may need to prove a conversation,this is especially important when dealing with large companies and numerous different members of staff.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Thank you Andy
I remember that the 50% overtime and bouns clause was not included in the proposal because there was no overtime when the proposal was being drawn up and the bouns is not guranteed it is based on how well the company does so the IP didnt include it in either and the creditors voted in favor. I was not to know we would get a bouns and could not forsee that there would be overtime. I am happy to pay extra at the review if it seems I have to but as I said at the start of this question the overtime is being used to cover increasing living expenses so hopefully at worst there might be a small increase in payments.

Hi,

I am new to the forum I have been reading messages over the last few weeks and find it really helpful with any questions that I have with my own Iva. I am slightly worried too that our modifications do not state that 50% of any bonus payments have to be handed over only any windfalls. my husband gets bonus payments every three months although not guaranteed he more often than not gets it. We started our Iva payments in November so decided to save any bonus payments so that we do not get a nasty suprise at our annual review. Is this the best thing to do as I did tell out company about these bonus payments originally.

Hello Hovish,

I think that saving these bonus payments is a very good idea. Even if you don't have to hand them (or part of) over at your annual review, you will have some savings in case anything else unexpected happens.

As you have advised your IVA firm of these payments you should be ok. As Andy says above, it is always a good idea to obtain responses in writing.

Kind regards,
Terry Balfour
IVA.com

IVA.com - The IVA Comparison Site
100s of reviews, All IPs and IVA firms rated.

Use our IVA firm comparison tool to find best IVA firm for you:
http://www.iva.com/iva_comparison_1.asp

Hi,
Thanks for your quick reply. Having money put by as savings in case of emergencies is this allowed. Any extra money we do have we were thinking of saving and handing over to IVa in a lump sum

Hi
Yes you can save money,as long as you have complied with your IVA conditions.Believe me you will need this saved money one day as things do and will go wrong within the five years.
I would clarify in writing with your IP that bonus payments are yours to keep and then carry on saving them.Whilst it is admiral to want to pay any money saved into your IVA there really is no need to
Regards



Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp