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Here we go...I am in an IVA with the 1st year review in May 2007. My question is this...If my regular (monthly) annual income has reduced over the year by lets say £3,000 but I earn a bonus from work for £3,500.Do I have to share (50%) of the £3,500 with My IP or just (£500 (the difference between what I have lost on a monthly salary vs the bonus payment. I do have a clause that 50% of any additional income has to be given to my IVA.
Cheers

Good evening,

It is inevitable for some people that their circumstances will change over the five year period of the IVA. It is normally preferable that the IVA plays out as originally planned, but sometime exceptions do occur.

Because of the changes in your circumstances, you should contact your IP to discuss the changes as soon as possible.

If, under exceptional circumstances, it is necessary to make a variation to the IVA then the IP has the ability to hold a variation meeting with the creditors.

There is no guarantee that the IP will elect to hold a variation meeting, and there is no guarantee that the creditors will accept the varied terms of the IVA.

For some people their financial circumstances may significantly improve during the five year period of an IVA. Most IVAs will include standard terms to deal with windfalls, bonuses and pay rises.
As a guideline the creditors will require that 50% of these that occur during the period must be contributed to the IVA.


Kind regards,


Julia

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If I were your IP, I would net the bonus off the reduced income. You have to take a common sense approach on things like this. But just as a matter of interest, how have you been affording your IVA payments on such reduced income. If you are up to date with your payments, there is some suggestion that you can afford to pay over the bonus. I judge each case on its own merits, so there's no right answer really.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Probably not, but you must disclose it. I am sure that your costs of living will go up in similar proportions - especially given the cost of heating and electricity at the moment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk