we are very unhappy with this modification

[Sadsack]

Here is a scenario which could possibly come about. I doubt very much if it would but perhaps it would make things a little clearer.

I have a basic income of £2333 per month. After tax etc, I am sure I would probably only have £1500. Because I am in sales, the company I work for have an excellent commission scheme. This can vary month to month, depending on the targets I achieve. If I had to pay over 50% of my bonus/commission, call it what you may, over and above my IVA payments, I would probably be paying in an extra £800 per month. Now I know that this is not the same as bigpete's predicament, but it could have been, hence an average monthly earnings was taken and my IVA payments based on that.

Unfortunately, as everyone is aware, my IVA failed due to many other circumstances.

If I was in a situation where I received a bonus/commission of £300 every now and then, I would be more than happy to pay £150. The other £150, I would save for the year and join the golf club!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[sonyse2t5]

Skippy, as most IVA fail in the 1st year,is there really such a thing as people should have enough to live on? Can you budget everything?

What happens if a baby comes along etc etc. Or do we put those in the I/E in advance?? There are things no one can budget for -Funeral cost etc. Or do we expect somone else in the family to pay??

25% of extra income to creditors I would agreed to.

[thebear29uk]

Sorry Sony but I think you are in the minority on this one. The IVA is based on your ability to repay an agreed MINIMUM dividend. This is subject to yearly reviews with the IP and a new I/E being completed. If your circumstances allow for an increase in payments and, therefore, an increased dividend, then that is what is expected of the IVA.

Yes the payments mean things are very tight for 5 years but people do manage and the ones that do tend to struggle are those who accepted the amounts in the first place just to get the thing approved when realistically the amounts were never really achievable.

We can be expected to pay the whole original debt, IP fees and 8% statutory interest if we are in a position to do so.

Regards

Dave

[sonyse2t5]

Dave,

I am happy with the IVA payments,it is fair.I don't get O/E so it doesn't bother me.

I am supporting the poster as to why 50% of extra income is paid and not 30% or less and so far none of the Experts can comment?? It is a simple question? Why can't people give a striaght answer these days.

Regards

[Sadsack]

I am enjoying this!!

An IVA is not the easiest of options, being that you are on a very strict budget and have to be very careful about spending. It is not there to punish us, just to give a return to the creditors from whom we took the money.

If there were no such thing as an IVA, what would the options be except BR.

Consider this:

Before entering into an IVA, I guess most of us were loaned to the hilt, credit cards were all maxed, overdraft was beyond its limit etc etc ----- what would have happened if the washing machine had broken, or the fridge went on the fritz? How would we have been able to buy new or second hand when being in so much debt?

I think that once in an IVA, any IP would consider a reduced payment for a while to take that into consideration, as long as we make up the shortfall.

From what I can gather from the IP's who regularly post on here, they realise that we are on tight budgets and understand that a debtor is at some point going to call and say the car, or fridge, or stove etc is broken. Even a bailiff cannot take your fridge away as it is a basic human right, so it stands to reason the IP will make sure something is done.

I say, pay the 50%, hold tight on the roller coaster and behold it will all be over in 5 years!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[thebear29uk]

Sony

The argument could be why not 70% or 100%. As with other criteria within an IVA such as 4th year equity release, these terms tend to be industry standard and, whilst most would prefer to keep more of this money, they accept it and, if they earn regular overtime/bonus, they know they have a contingency fund that won't be touched by the IP/creditors.

Regards

Dave

[MelanieGiles]

Sony

Please clarify your comment "most IVAs fail in the first year". Are you saying that most IVA's which fail, fail in the first year, or most IVAs that are proposed fail in the first year. Either way I just do not see where you are getting your statistics from!

The 50% rule comes from the principle of equal sharing of any future success between debtor and creditors. Nothing strange or startling about that - and before creditors introduced this modification, IPs took all of the increased income, so you will probably agree that this is now a much fairer system.

If IVA proposals are put together properly, with contingency budgets as well as actual, in my experience the VERY RARELY FAIL!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[hallway]

I have been in Iva for 8 months and am quite happy to pay 50% of my overtime, prior to Iva I would have been paying 100% of my overtime to make minimum payments.Only last week I paid my 50% to Ip(id saved all overtime for 8 months)and had enough left to buy my teenagers xmas pressies,first time in years iv been able to do that with cash,yes life in Iva can be tough but its still better for me than it was before.

[OPTIMIST12]

The Overtime clause is a win / win scenario for debtor and creditors. I would hazard a guess that once the 50% scheme was introduced then the amount of Overtime done by people entering IVAs (with that Mod) increased dramatically - and to the benefit of all concerned. More money in the wallet or purse for the debtor and a better return for the Creditors.

I wonder why there cant be a similar arrangement for second jobs, though. If people are not lucky enough to have the option of Overtime I am sure many would take on an additional part-time job as a way of supplementing their income. And the Creditors would stand to gain too as this would be another source of increased contributions.

[bigpete]

advertising contrary to the ethos of this forum deleted by admin

[Adam Davies]

Hi
Just to pick up on Sonyse2t5 point about a straight answer.
The 50% clause is a near universal part of everyones IVA and is fair.
Most IVAs fail early due to incorrect and unrealistic expenditure figures,nothing to do with the 50% overtime clause.
You are in a minority if you feel that sharing your overtime equally with your creditors is unfair and whilst i want everyone to express a view it is important to remember that an IVA is a compromise by ones creditors and is only the law if it is agreed by the majority of these creditors......it certainly is not a right to have part of your debt written off.
For someone in an IVA Sonyse2t5 your views are rather one sided and almost anti IVA and creditors.This is not a view that I want to portray on this forum so,with respect,only post if it is going to be positive and balanced
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

[aguise]

If an iva is worked out on all of your disposable income and you are happy to accept that, then why is it wrong to pay 50% of any extra to your creditors, we have paid a lot extra over as overtime and I really dont mind, that other 50% saved my little dog from suffering any longer than she needed, it bought a new telly, it fetched my daughter back from ibiza when she got stuck. We could not have afforded these before the iva, I am just glad I can keep the 50% for these kinds of unexpected problems. Yes 100% would be nice but I do feel a duty to pay back as much as I can. I am sure a lot if iva's run smoothly ,some will have difficulties as with anything. The one message here is when you accept an iva you have to understand everything. It is difficult I agree to take in what is being said if you are rung with modifications during the meeting but this one tends to be in most proposals prior to the meeting. I understood fully that all windfalls and 50% of overtime would have to be paid and really am happy to pay it. The choice to not do overtime it is always there.

Ang



Please visit my blog at http://aguise.blogs.iva.co.uk/

[catullus]

When I first read this thread I thought that it didn't seem quite right and I think bigpete with his last post has declared his hand.

As i've commented before, for the last two/three weeks the board has had a proliferation of one time posters raising issues that might be perceived to be "difficult" issues for the IVA process, Normally, the board debates the issue and comes up with a unanimously sensible response, but the original poster is never heard of again.

This thread is different,bigpete seems to have broken the mould and revealed exactly what his game is.

[MelanieGiles]

What a shame that these threads spoil the ethos of the forum - I am personally having a lively discussion with one of the companies posted on his last comments about one of my own clients, who has innocently fallen prey to the spin, and felt it was better to "employ" the services of such a firm than speak to his IP directly once the Certificate of Non-Compliance had been served.

I suppose that this is just an occupational hazard of being involved in forums such as this - but thankfully the work we do with the genuine posters far outweighs the nonsense.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Soulgrowth]

Keep up the good and valuable work Melanie, it is always greatly appreciated [:)]

Debbie

www.familyceremonies.co.uk

www.soulgrowth.co.uk