I have been told i should not earn anymore than 10% of my net pay for every month through ovetime.
The problem i have is that i am still payed weekly so when does my month end/begin??
Does the IVA run from the 1st to the 1st of every month or can i work my net pay out using a 4 week term using a 13 month year
e.g. 4 weeks net pay including overtime x 13 (months) = 1 full year?
Please please advise as i begrudge given anymore of my hard earned wages than i should.
There is nothing to stop you earning more than 10% of your wages in overtime, but you will then be expected to pay across 50% of the excess after that 10% and keep 50% yourself.
I suggest you speak to your IP to find out how they calculate your monthly payment.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
its actual 10% of your yearly income (yearly reviews and reports to crediotrs in an IVA) as I understand it. Therefore you just need to take your base salary for a year and divide it by 52 to cacluate your 10& allowance.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Many Thanks to you both for the info.
So if i earn over 10% one month do i have to pay them the 50% straight away or can i leave it until the end of every year?
But surely technically you are not due to hand over the money until your yearly review? Its just that its best practice and better to hand the money over as you earn it.
If you lost a month salary for example after you had earnt overtime, then surely you would not have earnt more than 10% over you pay? I dont recall the word month being in my IVA.
I understand that it that you can leave it until the end of the year, but I am not really sure what the benefit would be. I dont earn overtime but if I did I would rather know my contributions are upto date.
I believe that you should hand over any extra money earned within 14 days of receiving it. That is what is says on my report.
It doesn't have anything to do with whether or not you may lose any salary. What you have earned is extra at that time. Any loss you would have to negotiate with your IP.
I'm sure Melanie or Andy if they are on later will confirm this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If I don't hand mine over, then I can be in breach and it will have to be reported to the creditors.
If you don't pay it across straight away, there is always the temptation that you will spend it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
I believe that you should hand over any extra money earned within 14 days of receiving it. That is what is says on my report.
It doesn't have anything to do with whether or not you may lose any salary. What you have earned is extra at that time. Any loss you would have to negotiate with your IP.
I'm sure Melanie or Andy if they are on later will confirm this.
I suspect the 14 days may vary between IVAs as the information reviewed by IPs seems to vary somewhat. I think you are right about the salary loss and it is probably somewhat irrelevent!
But the application of the 10% rule would surely be the same if you are weekly, fortnightly or monthly paid as its just 1/52th, 1/26th or 1/12 of your annual income and untimately 10% would be the same value no matter how you were paid .
agree with handing it over.... its what I would do. Its not like it would be easy to find the money again whilst being in an IVA and best case scenario would be that the rest of your payments would be upped!
I believe it is 10% of your monthly pay though if you are paid monthly, I really don't know how it would affect you if you are weekly paid.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The IVA protocol dictates that additional monies have to be paid over within 14 days, but at the end of the day the actual terms of the proposal as accepted by creditors will dictate this.
I understood I had a protocol compliant IVA, yet I cannot find any reference to overtime or this 10% in any of my documentation. This includes my IVA proposal, my chairman's report and the terms and conditions of a protocol compliant IVA.
If it is not included in these documents, can I assume that I can keep all overtime.
You will need to ask your IP this question. It is odd that there is no provision in your IVA for the collection of additional earnings, and I cannot believe that your IP would simply ignore this provision.
