extra income

[camiva]

What happens if while on an IVA i have the chance to earn extra income of up to £1000 for a short period of time. Just over a few months.

Also will the rented house that I am in ever be associated with my IVA. For example if the owner wants to sell it will it be associated bad debt?

[bluebelle]

Camiva,

Any overtime/extra income that you earn, 50% will go to your creditors and you will be allowed to keep 50%...this is normally one of the conditions of your IVA.....they allow you to keep 50% because they obviosuly want to encourage you to earn extra money otherwise what is your incentive to do it!

I am not an expert but I believe a few years ago the law changed and your credit rating (including things like IVAs, Bankruptcy) go against you as an individual and not an address. I am sure someone on here will confirm whether this is right.

[camiva]

Thank you! Thats very helpfully.

Can anyone out there confirm the bad debt/house assication.

[Skippy]

I think that Bluebelle is right about the change in how a credit rating is sorted out. Some of my debts were still at my mum's address (I only moved out recently) and she has since been approved for a loan.

Two down, fifty eight to go until freedom!

[neverending]

Hi
Bad debts are against the person and not the property.When earning extra money make sure that if your expenditure goes up,eg travelling,then you inform your IP and this amount is deducted from your extra earned income before you have to pay the 50%.Also send the required money in as you get paid it otherwise you are in danger of spending it and then having to try and find it.

[camiva]

If I do earn extra income say for example £1000 and give 50% to my IVA does that mean that I can finish my IVA in less that 60 months?

[freelili]

Sorry but it doesnt work like that, you pay as much as you can to your creditors over 5 years (50% of any extra, overtime etc)and they write the rest off for you.

LILY

[camiva]

what happens then if say ( i know this is mad) I win one million on the lotto can i pay off just what I own my creditors under the terms of my IVA and keep the rest.

[accgroup]

Hello

Usually an IVA has what is called a "windfall clause". This means if you receive any unexpected cash, eg a lotto win, you have to pay in as much of it as is required to pay your creditors in full plus any statutory interest.

Sorry but you cannot get away with just paying off what you would have done under the terms of the IVA - you would not be in an insolvent position anymore.

I find that most people want to repay their creditors what they are owed in full, if they are able to.

Hope this helps



AccumaGroup - A large insolvency practioner service based in Manchester.
www.accumagroup.com

[bluebelle]

Hi,

can you just confirm what you mean by statutory interest?