Company Share Ownership Scheme

[roberto]

Hello,
I am about to embark(hopefully)on an IVA, I have a telephone meeting with Melanie tomorrow and my nerves are in bits, one thing that I will be looking for advice on is our Company Share Option. This is a scheme where you pay up to, I think 5% of your pay, into the scheme for five years, and at the end of the term you sell back the shares to the company. As an incentive the Company matches your investment, so in effect you are doubling your money. In some years the Company only offers you, buy two get one free, subject to business success. The shares mature, and are sold back to the Company in October I think. My question is, how is this viewed? Windfall? Bonus?
Last years payment was around £700.Would I have to submit all of this to the creditors? Would it be 50% minus the initial 10% of monthly income? Or could it be negotiable? As I am only paying up to 5% of my monthly income, could that be offset against the 10% that I am allowed to earn above my wage?It is a scheme that I would prefer to continue with, because if I ever get out of this mess, I will need some sort of income to put towards retirement. And of course it is another pabonus to the creditors as the Company are adding to the total sum. Messy is n`t it, but my whole life seams that way at the moment.
Any idea`s?
[?]

[Michael Peoples]

You will have to discuss this in detail with Melanie but there may be a way of reaching agreement with creditors. For example, if the money is paid annually and each scheme runs for five years, you could agree to offer any money that matures during the IVA and in return creditors might allow you to continue paying into the schemes that mature post IVA.

Otherwise, creditors could ask you to suspend payments and take the money from you that you contribute to the scheme. In my opinion that would be shortsighted by creditors as these schemes are normally tax efficient so the actual amount creditors would receive would be much lower than the gross figure currently being paid in. Given that your employer also contributes, creditors could be substantially better off by reaching an accommodation with you and you could remain in the scheme and build for your future. As I say, discuss your situation in detail and provide Melanie with all the relevant paperwork and I am sure she will be able to advise you on the best course of action.

[roberto]

Thanks Micheal, that does make sense.

[MelanieGiles]

I have a couple of clients who are continuing to pay into their firm's sharesave scheme on the understanding that the shares be sold when they mature and creditors get the benefit of the proceeds - and I have other clients who have decided to cease their share payments and thus free up more dispsable income on an ongoing basis. There is no right or wrong answer - and we will chat this through tomorrow Roberto.

And please don't be nervous about the chat - most of my clients tell me that they feel much better afterwards and I am sure that you will too!!

[roberto]

Thanks Melanie