www.iva.co.uk

Hi
I've just been given a 2.3k payrise which I wasn't expecting. At the end of this month I'll only be 5 months and 6 payments into my iva. I won't have a review till next May.
It's probably been asked before but I'm not entirely sure what the procedue would be! I'll inform my ip once I get my next payslip but would I need to fill in a new i&e or wait till next May? My expenditure was reduced in order to offer enough in the first place and with my promotion a month ago my expenses have increased. Is it too soon to change anything and can I add things that should have been included before?
I thought I'd ask the experts first [:)]

Pixie

Pixie I can't answer the IVA question, I just wanted to say well done and congrats on the promotion

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I think it depends on the specific wording of your IVA. Ours says 50% of any monies received above the agreed monthly amount. Hubby has had a decent payrise since the IVA was approved (the first month actually!) and we pay 50% of the uplift to the IVA. At our annual review we will obviously have to revise our I&E in light of the increase in income, although our expenses have increased too due to increased travel costs, childcare increase and school dinner rise. Our mortgage is also due to go up by a couple of percent next year, so we need to take that into account too!
Hopefully things will even out, and we will end up no worse off!
Good luck
Blue

Hi
As you reduced your expenditure to have your IVA agreed I would be inclined to wait until your annual review,unless you have the above clause.When you get your new income and expenditure sheet make sure that you list your realistic and upto date expenditure.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

Thanks [:)]

I've just dug out my proposal and found the 50% clause. I thought it was just overtime/bonus but it does say any other additional payments received over and above.
Am I right in thinking that if I pay 50% of the increase this will be ok until the next review in May? I don't want to spend to it and then have to pay it all back!

Pixie

Yes, that sounds like our wording too! We pay 50% of the increase until our annual review.
Blue

ok, thanks I'll go along with that!

Pixie

Wow Pixie that sounds like a great payrise, especialy as you were not expecting it!!!
Great news

It's actually even better than I thought! The figure they gave me as my current salary was actually higher than it really is, meaning my payrise is actually 3.2k!!!
The only main difference is the bonus structure has changed which means that 4k a year is not guaranteed. previously this had been a % of salary and was guaranteed.
This bonus has been taken as 100% within my iva so I'm not sure if my new bonus will be taken as the same or at 50%.
Oh well either way my creditors will be happy!!!

Pixie

I have the 50% clause in my proposal, but it applies to bonuses and overtime and not payrises. I too had a payrise only a few months in and contacted my IP. They told me my income would be reviewed at the annual review and payments increased from then, and the increase is not backdated so I get to keep my payrise until annual review which is good news.

I've just advised my iva company about my pay rise and been told anything above 3% has to be paid in. I can't see anything in the proposal that states this. It just says I have to notify them.
I've sent a new i&e which is more realistic and actually works out to just over half the increase.
I'll probably hear back from them tomorrow but does this sound right? If they don't accept the increase and they take the bonus as guaranteed then when this isn't paid there's no way I could afford the increased payments.

Pixie

Hi Pixie

It really depends upon the exact wording of your IVA proposal, together with any modifications which which were put forward and accepted at the creditors meeting. However, if you can afford the increase stipulated by your IP, then I would crack on an pay it to avoid any further confusion.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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Hi
I am a little woried about this.
On one hand you have a payrise of 3.2k but on the other your 4k guaranteed bonus[that is part of your income for IVA purposes] is no longer guaranteed.
Surely you should continue paying your IVA payments, as the payrise replaces the guaranteed bonus,and then pay over 50% of your bonus when and IF you receive it.This is standard procedure in most IVAs
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

when i got my payrise i informed my IP, they sent me a new I+E Form to fill.. which i did.

i got a rise of 3k.. after doing an I+E plus rises in expendature they didnt make me pay anymore and was happy for me to keep my rise.

58 PAYMENTS TO GO..

Hi
The bonus is 4k divided by 12 so £333.33 a month. I've been told it will be ok till january but then they are going to be stricter on how this is paid. Previously if target was missed it was paid anyway which is why it was originally included within normal salary in order to have enough to propose the IVA. I've now moved to a new section and it will be worked differently.
My main concern now is that they take this as guaranteed income and should it not be paid one month I'm in trouble.
Without the bonus my wage is just slightly under what it was before.
My expenses have increased with the new job, but they were set lower in the first place to enable the proposal. Increasing them to a more realistic level would be just over half the bonus (minus tax etc.)
I'm quite happy to pay more and fully expected it but at the same time I don't want to pay a lot more than I can afford.
I haven't heard anything back yet from them today.

Pixie