My IVA has still to be approved,and hopefully it will be soon. I have just found out I will be getting a backdated pay settlement to August 2008. This is to be paid in my Feb 09 pay.
Assuming my IVA is approved, will I have to declare all of this or just the part in force after an IVA is set up. I'm not trying to duck additional payment, just curious how it will work. When I declare it, about £400, how much of it goes to the IVA?
You will have to declare all of it, assuming that your IP is going to propose your case under the IVA protocol. In which case you will be allowed to keep the equivalent of 10% of your usual basic salary, and provide the Supervisor with 50% of the balance.
Your IP should be informed and he should inform your crediors about this, if possible prior to the meeting.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
When my IVA commenced I too received a back dated payment for my salary - this consisted of back dated pay rise and performance bonus - my IP made me pay over the whole amount as it was all due prior to the IVA start date and therefore in their mind it would have been available for our creditors at that stage ! Speak with your IP and see what they say.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
