Overtime and 1st Review

[Locko]

Hi just wondering if anyone can help, our IVA has not been approved yet but my husband is doing overtime at the moment, once the IVA is approved would we have to keep 50% of the overtime to pay up when we have our first review thanks for your help Locko [:)][:)]

[carlmcmullen]

Hi,

Once your IVA is approved then it is normal for your creditors to request the modification for overtime to be paid into the arrangment.

The modificaiton reads something along the lines of...

Overtime, and bonus payments were the sum exceeds 10% of the normal take-home pay must be disclosed within 14 days of receipt and 50% of the amount (over and above the 10%) shall be paid into the arrangment.

Which basically means from my understanding(in round figures)

If you normally earn £1,000 pcm then should you be paid £1090 then there is no need to pay any into the VA.

If you earn £1,150 then £25 should be paid into the arrangment which is half of the £50 as the first £100 does not need paid over as this is the first 10%

[MelanieGiles]

For IP firms who are using the IVA protocol, these provisions will already be included in your proposal and your IP will explain how they intend to monitor your earnings on an ongoing basis.

In my practice we ask clients to verify their income every three months to ensure that we are closely monitoring whether additional earnings are building up. You technically do not have to pay any amounts over until the end of each year, but it is wise to just pay it over when it is received rather than run the risk of spending it causing the IVA to fall into default.

[Kazzy E]

Perfect explanation Melanie & Carl. All is so much clearer now. Kazzy

[angela18]

we send our payslips off to melanie every month.. then I know they have them

[Shining]

Should I be sending my payslips in monthly to Melanie I am now wondering? I don't and haven't been asked for them, but do send my 50% uplift payment (via cheque) with a spreadsheet detailing wages received and the formulae used for the 50% uplift. I'm assuming this is sufficient.

[MelanieGiles]

There is no need Lesley. We trust you to manage your own affairs, and at the end of the day we will do a round up at the end of the year in any case to check the wageslips at that stage.

[Shining]

Thank you Melanie, I do keep a detailed sheet saved in several places for back up purposes and all wage slips are logged exactly.