overtime (again)

[Adam Davies]

Hi
So are we all agreed that the debtor can keep any overtime equivelent to 10% of his/her normal net pay and any remaining overtime is split 50/50 ???
Regards

[rollercoasterride]

Hi
I spoke to our IP about this yesterday and they see it as hubby takes home £2053 p/m, can then earn £205 p/m o/t then anything over that gets split 50/50. Hope this helps. They said we can send it monthlyn with our usual payment, or send it quarterly - which is what I will do cos then it's earning interest in bank account!!!!

[ianmillington]

Hi again

The clause 10% then 50/50 (which is a TiX) modification will make no reference to "routine" overtime so potentially it's a catch all. However, at the same time they may well propose a review clause which provides for 50% of the increase in net disposable income (including routine overtime) to be paid simply as part of the annual review process.

Confusing I know but I've interpreted it as meaning that if overtime is regular it simply means that the client has a variable income from month to month. A wise provision would be 50% of increase in take-home but if outgoings have increased the review clause suggests that due allowance ought to be made for those before the 50/50 split.

If it's "one-off overtime" or say a performance bonus then clearly the 10% then 50/50 will apply. That's my take on it anyway.

ian

[maxdebt]

Ok thanks Ian. In fact my proposal does not have the 50/50 split nor was it included as a modification by my creditors. My IVA was calculated on a net income of £1850 but with a couple of extra shifts I can earn around £2050 a month. So if I WAS subject to the TIX modification (Allowed to keep first £185 then 50/50 split), I would only be splitting £15 with my creditors. Doesn't seem much does it? Overtime is not always available where I work it tends to come in batches (staff sickness etc)

[MelanieGiles]

That's correct maxdebt - and as Ian will probably agree with me, the number of manhours people like him an I spend, scrutining wage-slips to collect paltry sums of money, which make very little difference to the eventual dividends - especially as the majority of debts are actually sold on for less than 10p in the £ following the acceptance of an IVA, makes this whole exercise rather uneconomic in any case.