You are right Pauldebt its not fair but what some IVA companys say is that if they were to let you do the figures over the year which would probley be the fairest way to work the figures out, in the past when it has come to the end of the year and its review time when the IP says you have earned for example £750 over there would be some people who would say sorry ive spent it!!
When we do earn different amounts every month like we do its not going to be totally fair until they work it over the 12 months.
On a personel note, we have paid everything over evry two months for nearly four years and for us it would be nice to see a little bit of trust coming into the equation.
I think it is quite simple. Your income should be based on an average over the year and the 10% 50/50 rule applied that way. Alternatively it is calculated on an annual basis and trust your client!
So for example, if your salary was based on earning £12K a year, and you ended up earning £13,500, you would have to pay an extra £150? That is what I am saying. Are you? And add it on to the end of the 60 months. I would be fine with that. Course if you earnt £13,200 or less then you wouldn't pay any extra.
I see where you are coming from, Paul, but many of us would prefer to pay extra earnings as it arises, rather than extending the IVA at the end. 5 or 6 years is long enough, without adding to it
I believe some IP's review the average quarterly and a lot will depend upon the extent of regular fluctuations.
For anyone reading this with fluctuating income, a thorough chat with the IP right at the outset is a good idea -- if they appear unable to adapt then move to another one before you are signed in to the contract.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
That is how mine works PaulDebt - the only downside is that you need to make sure you don't spend the IVA's 50% share & have it available to pay over as a lump sum at review time!
I have only ever had to pay extra last year which I did as a lump sum although I did have the option to repay over a period of time but I don't want the IVA dragging on any longer than it has to.
I have read on here of others who have had x months added on due to uplift payments so it may be possible to agree with your IP. Which company are you with?
Well I think I have already won and my IVA company (Bridgestones) have finally conceded that it is unfair what they have done to me. Why do I say this? Well today I received my second annual report and and was drawn to the following point;
Mr H****** has earned additional income over the last 12 months, however in other months he has earned well below his stated net monthly income. Mr H****** has to budget for these months by holding back income from the months that his income is higher. It is my belief that no additional income was due and this can be seen when taking Mr H******'s net yearly salary averaged over the 12 months.
I have won haven't I? Last year, I was in breach of my IVA and agreed to remedy this by agreeing to pay the additional income at the end of my 60 months. I will now argue when I talk to the lady on Monday, that this should also be waivered. Surely they have to now?
Last edited by PaulDebt on Sun Aug 10, 2014 11:04 am, edited 1 time in total.
Just spoken to one of the insolvency practitioners at my IVA company and she is COMPLETELY on my side. We have agreed to now review my IVA on a quarterly basis but said she is probably going to approach my creditors and argue that the 10/50/50 rule should not apply to me. Also, the monies that I owed from the first annual review are now going to be waivered.
