Declaring a pay rise

[ivanoob]

Evening all,

I have been in my IVA now for 13 months and have just done my annual review. I have a quick question for you. If I were to recieve a pay rise from my employer that would give me an extra £450/month after tax, would I have to declare it to my supervisor now, or could I wait until the next assessment date? I have been reading this forum regarding 50/50 splits of pay rises and/or overtime, but the only clause in my Chairman's report regarding excess income states:

"Any windfall, in excess of £500, received by the debtor must be paid immediately paid over to the supervisor for the benefit of the creditors."

Nothing is mentioned about overtime/pay rises or 50/50 splits so should I be concerned?

Cheers!

[MelanieGiles]

Hi avanoob and welcome to the forum

As that payrise is exceptional, rather than inflationary, you would need to disclose it as soon as you became aware of it. Your IP will want to reassess your disposable income with a view to increasing payments.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ivanoob]

Thanks for the reply Melanie.

If I were to increase my payments would that mean that the repayment period would decrease? I'm currently in for 72 months and paying 33p in the pound.

[MelanieGiles]

Sadly not - unless you were able to repay 100p in the £ at some stage of the arrangement - which is probably unlikely.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[s.b]

I was in the same situation with getting a big pay rise and luckily I managed to negotiate a lower increase rather than paying over all my pay rise which is what they wanted but for me it has ended up with me paying 100p in the pound so it will be completed early, otherwise you will pay more but not decrease your term

[ivanoob]

Thanks for the replies. Can you explain what 100p in the £ means? I doubt that my supervisor would want me to hand over 100% of my pay rise as there is no clause in the chairman's report regarding this....or an I wrong?

Cheers.

[MelanieGiles]

100p in the £ means that you pay all of your creditors in full by the end of the arrangement. You will need to speak to your Supervisor directly regarding the amount required from your payrise.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk