IVA First Payment ..... do I pay my bonus and overtime

[tasha_shero33]

Hi

I have set up an IVA and the meeting is scheduled for the 17th of December.

My question is I will get paid around the 20th December and my wages will include my xmas bonus and my overtime for both me and my partner. Do I have to declare this on the first payment?

I have till the 14th Jan to pay so I was wondering if I paid on the 14th Jan and classed that as a Jan payment could I possibly avoid them getting there hands on my bonus etc. obviously next year I am happy to pay bonus and overtime etc but just feel that it will be a very big first payment that we could use to get some things done to the house.

please advise even if its to tell me tough luck you have to pay it.

thanks xx

[Foggy]

You will have to pay it. If the IVA is accepted on the 17th you will be in the IVA on the 17th -- moving payment dates will not alter that. If you have the usual "10% 50/50" clause, you deduct the equivalent of 19% of your agreed monthly income from the bonus and overtime, then split the rest 50/50 with the IVA, so you will, at least, get to keep some. But do check your proposal as some have only 50 / 50 (as mine did) with no 10% allowance.

[Foggy]

By the way --- unless your partner has been written in to the agreement / payments, which is unusual, their overtime / bonus payments, etc. are not counted and need not be declared.

[MerlinL14]

The timing of your first payment is unfortunate but it is not all bad news, you should be covered under the 10/50/50% clause so you won't lose it all to the IVA. As Foggy says if this is just your IVA then anything your partner earns is theirs to keep.

[tasha_shero33]

Hi the IVA is in both our names so it will be both our bonus and over time.

think we have the 10% then 50/50 rule so it isnt all bad. I have lost a few days unpaid this month so hoping that I can use the bonus to boost what I have lost in wages before they take there cut so it wont feel too bad.

Also if they don't agree on the 17th and things are dragged out. Can that possibly change the date or is it once the meeting has happened regardless of any changes the payment will be classed as a December payment.

just have to swallow this one by the looks of it. my advisor had originally told me that I will be ok and not have to pay the bonus over but the date for the meeting came back earlier then expected.

Also are we meant to get a paper copy of the IVA or is it normal to sign it online?

[Foggy]

Hi the IVA is in both our names so it will be both our bonus and over time.

think we have the 10% then 50/50 rule so it isnt all bad. I have lost a few days unpaid this month so hoping that I can use the bonus to boost what I have lost in wages before they take there cut so it wont feel too bad.

Also if they don't agree on the 17th and things are dragged out. Can that possibly change the date or is it once the meeting has happened regardless of any changes the payment will be classed as a December payment.

just have to swallow this one by the looks of it. my advisor had originally told me that I will be ok and not have to pay the bonus over but the date for the meeting came back earlier then expected.

Also are we meant to get a paper copy of the IVA or is it normal to sign it online?

Ah right -- so, to avoid any future confusion you each have an IVA (no such thing as a joint IVA) just joined together so you make one joint payment each month. If things are dragged out and the IVA isn't accepted on the date of the first meeting and the acceptance comes after your pay day, then the extra income should be considered all yours as you are not in the IVA until such time as it has been accepted by creditors.

I signed my proposal online, but was also sent a paper copy some days later. In this modern day and age, often, an online copy is all you will get. It depends on the provider. Personally I would print off a copy as you will need to study it in detail -- several times over a few cups of tea / coffee -- to make sure that you are fully aware of your responsibilities as well as those of your supervisor, who might sometimes stray too ! It is your IVA and your responsibility, at the end of the day, to ensure that you comply and to have the knowledge that your provider plays to the rules too.

[tasha_shero33]

Sorry about that I am new to all of this. so it is two IVA's we have.

Thanks for the advice. I am still hoping the IVA goes through, I get paid the 20th of this month as well haha how cruel is that.

I might not even get my bonus as I am not guaranteed it but I have had it for all the years I have been here.

Someone on another site has advised the below....


I wouldn't mention it, the proposal has been sent as it is and if creditors accept it as it is then they are fine with it as well.

If that doesn't sit right with you then you can mention it, and it would come under the 10% buffer then 50/50 rule.

hopefully it will all sort itself out anyway /I will see what my adviser says and what happens on the 17th

[Foggy]

The advice from the other site is, basically, telling you to break your agreement in month one! However it sits with you, it could get the IVA's failed at review when your income is examined and the payment discovered. There is a large element of trust in an IVA as well as allowance for a chunk of discretion. We are not saints on this forum, but we do advocate acting within the agreed terms and conditions, after all, we expect our IP and creditors to do so and will challenge them if they don't.

Best of luck with your meeting.

[MerlinL14]

You are being (badly) advised to commit fraud. The IVA is an education as well as the ultimate aim to clear your debt don't get into a mind set that you won't get found out, you may not but the consequences of getting caught not supplying extra income is far more severe than a slap on the wrist and could result in your IVA being voided. Taking you back to square one but with a mark against you that would be easily found knowledge in the circle of IP's who administer IVA's.

[tasha_shero33]

Hi

Thanks for all the advice I have told my adviser about the likely hood of a bonus and the days off I'v had and they have said that we will sort something out once it has been agreed on the 17th.

You are all right, I need to get into the mindset I am clearing my debts and if I hadn't of gotten the IVA the bonus would be just going towards paying the pay day loans and I wouldn't be seeing any of it anyway. At least now I will get the benefit of at least half of it.

Just need to realise that once this gets accepted (god help me if it doesn't) I will be able to breathe again. I will be able to live, as before all this I was constantly robbing Peter to pay Paul. This is my life line and I need to go into it with the mindset that I am clearing my debts and living without all the hassle and stress.

Thanks All

[Foggy]

You will find, for the first few days, that your emotions will be all over the place. But the sense of relief is palpable (and I think my postie thought I had left the country). Over time the whole experience -- if approached in the right mindset -- "resets" your relationship with money ... real money, not magic plastic.

[tasha_shero33]

Haha at the postie joke, think mine might send me an xmas card now he wont be bringing me all my chaser letters haha

I think that is what is happening I have been up and down and second guessing my decision to get into one, but I know that we could carry on the way we where.

The budget has been really good the adviser put in a few figures to help us out as she explained it was better to be slightly over budget and then to under budget as it is hard to change it once it has all been accepted.

Just hope it all goes through without any changes now but there is a figure in there that I know they might question as we are paying my mum back as she paid for our boiler to get repaired so owe her £950 and currently paying her 100 a month back so hope they let me continue paying her back.

My partner is looking at giving up smoking in the new year as well so we will save money on that from the household bills.

I just want it to get accepted and us to start it now.

I am starting to use cash to pay for things rather then my bank cards as I have noticed when you hand over cash you sort of second guess your purchases so I am being more careful in what I buy and asking myself do I really need that. Sorting through the freezer this weekend t see what I can make with stuff in there to save going the shops. I will do this. I plan on clearing all my debts then save save save as I hate living pay check to pay check at the moment and having a baby is really making me want to take control of things.

thanks for all your help and advise I am sure over next few years I will be back on here for advice