would i have pay this all into my iva?

[Julie]

Is it unusual not to have an overtime clause? Alun's hasn't got one at all.

xx

[MelanieGiles]

In older IVAs it is not unusual to not have an overtime uplift provision, less so in more recent cases.

[Julie]

Thanks Melanie - IVA was approved Feb 07, I've double checked and def not in there. Not that he gets the chance to do much overtime.

[moretolife]

our IVA has no overtime clause either..funny to think its classed as an "older "one now after only two years

[David Mond]

TIX and GT and other Agents put modifications now (Protocol compliant or non-compliant ones)and this is something that the IVA Standing Committee will be looking into hopefully on November 26th

[susey]

thanks for all of your advice i have now checked my propsoal, and it says re excepional income that i will have to pay 50% of net income . exceptional income is monies which is 10% or more over my normal take home pay. i also rang my post applications and they told me just to send in aletter in stating how much i recived extra after tax and insurance ,and they will let me know if i owe them any more ,also recieved a pay rise in september for about £29 after tax and insurance . which they say should not affect the ammount ihave to pay in

[David Mond]

Not too bad then

[robert25]

I am in process of sorting my life out. I have just sent my figures in to an IP. There are 4 things that spring to mind as I was unaware of this 50% clause:

1. My wife and I have submitted joint figures but as it actually looks like as most of debt is just in my name we may be able to keep her out of IVA/DMP. She also gets expenses in a cheque which goes into a different "luxury" joint savings account.That wasn't declared in our income/expense sheet.It never has more than about £1,000 in it. Does this need to be declared if the IVA/DMP is just in my name? I assume it does if it's a joint one.

2.I am self employed and my monthly business income goes into a limited company I set up last year before the crunch and now fluctuates from £800 to £3000. I have provided average drawings figures to my IP (All I have earned less tax and NI). If business improves and incomes are more at the top end or better would I be better just paying myself the agreed wage and keeping the balance in the business? Does it matter? Would my creditors want more out of the business?

3.I am just about to start a little part-time job which will net me about £200 per month.The idea was to supplement my income in the bad months. I'm on a 3 month trial. I may not like it, they may not keep me on after my probation. Would this need to be declared now? If it is and I don't stay would that commit me to a higher payment? Would I be better keeping quiet for now and declaring it later?

4. If I do end up earning more and/or my wifes expenses are taken into account, and I do pay more in, will it have any effect on the timescale for clearing or amount paid into the IVA/DMP?

Every time I look at the forum I learn some more and have more questions!!! Every timeI think I know where I'm going I get added confusion! This is a very steep learning curve!

[robert25]

Can anyone help with my questions (above)

[MelanieGiles]

Hi Robert

Sorry that no-one has picked up your earlier query - in my defence I only arrived back from a week's holiday yesterday!

1 If you have a joint savings account with your wife then this will have to be declared to your IP, and any monies held in the account detailed in your statement of affairs. For amounts under say £500, I would suggest that these be left with you by way of a contingency allowance, but ultimately this will be at the discretion of your creditors.

2 You say that you are self employed - but also trade through a limited company. Do you therefore provide consultancy services to the limited company? It rather seems to me that you are paying yourself dividend income out of the limited company, and therefore you may be better off by drawing a minimum wage to the level of the personal allowance (currently about £6k) and then taking the rest out via dividends - but do take professional accountancy advice on this so that you do not fall foul of tax legislation.

3 As you need to declare all sources of income, the money from the part time job will need to be included, but you should let your IP know that this should not be relied upon.

4 If you end up paying more into the IVA, this will not reduce the timescale for repayment unless you are fortunate to be able to offer a full repayment to creditors including the costs of running the IVA.

Hope this helps, and do continue to ask your questions. We promise to be more attentive to you next time!

[robert25]

Thanks Melanie.

I don't employ anyone but, as things were going so well at the time, my accountant recommended that I set up the limited company and pay myself a set wage and year end dividends. Because of the sudden market change in Autumn 2007 (about the time the company was formed!) I found that the only way to keep going was to pay myself everything I earned- less tax. Not what we planned at all!


If we can keep my wife out of the IVA would it be wise for her to get a sole savings account for her expenses cheque? Or would it still have to be declared? Also her wage gets paid into a different joint account. Should she have a sole one?

[MelanieGiles]

Robert

You do need to really be careful about the way you are paying yourself out of this limited company - you cannot just do what you want to do unfortunately as there are company law and accountancy rulings to observe. What does your accountant advise in this regard?

I would suggest that your wife gets her own bank accounts so that she can keep her finances separate from yours in the future.

[nervousperson]

Robert,

Answering Point 3 (and ignoring the rest as I don't have experience of this), I changed job a while back and my Salary fluctuated for a few months as they sorted out tax etc.

I discussed this with my IP and I ended up just sending them in a statement of income at the end of each month. They then let me know if any additional payments were due.

I *could* have left it 3 months or so (again, clause in my IVA to review payslips every 3 months) but would have meant I perhaps had a bigger sum to pay after 3 months which could have been problematic.

Easiest way to maintain level cashflow was to do it on a month by month basis.

HTH

[David Mond]

All income must be declared as you will run foul of your Terms and Conditions of your IVA. Speak to your Accountant who should advise you accordingly