Hi
Just wondered if anyone could provide me with some advice re pay cuts and IVA's. I have only been paying into my IVA since July and today we have all been informed that they are looking for us to take a 20% pay cut on our salary. Obviously this is going to have a major impact on finances and I am worried sick that i will not have enough to live after paying everything out. Any help would be greatfully received
There is always an answer! You just have to find it!
You are going to have to speak to your IP about this and see if you can reduce your payments, at least for the time being.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks, It seems every time you are making headway something else comes along. If the IP goes back to the creditors does this mean another creditors meeting
There is always an answer! You just have to find it!
I think the IP is allowed to do up to a 15% reduction without resorting back to the creditors.
You do have to speak to them asap so that you can get something in place before your cut comes into effect.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Kallis, I will be speaking to them tomorrow, we are voting on this towards the end of the week, but the way it has been put forward it was either this or no job. So i will imagine they will get it through. If the IP is allowed to reduce the payments by 15%, is that 15% of the monthly payment (sorry to sound stupid) but i will be losing £100 per week after tax and i pay CCCS £443 per month
There is always an answer! You just have to find it!
I hope you can get something sorted omega. If the worst comes to the worst, is BR an option you could consider?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I didnt want to go BR, my wife jointly owns the family home and would be devastated to lose it, as that is the only asset we have, just working through finances for the umpteenth time to see where we can make cuts
There is always an answer! You just have to find it!
Let us know how you get on with your IP. I hope you can get something worked out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
With that level of lost income, it appears that you may be unable to offer any form of repayment to your creditors via the IVA. If so, and if it is important to you to keep the IVA in place, I would ask your IP to apply to creditors for a payment break of up to one year, to enable the lost income to be regained - either through existing or new employment.
Has this been explained to you as a temporary or permanent reduction in salary? 20% is a lot to swallow assuming that they are expecting you to still work 5 days per week?
They have explained it as a permanent move allowing the business to survive. What they have said is that by the way of compensation they will be implementing a new bonus system that will allow bonus to be paid every month in addition to this my wife is asking about extra hours at work as well today to see if we can at least come up with something. Had a really bad nights sleep worrying about this
There is always an answer! You just have to find it!
I have just spoken to my IP who was really helpfull considering Icannot provide anything concrete as yet. They have basically said that anything more than a 15% decrease in salary would require a variation on the IVAbut what she did say was that due to the amount that I am paying in my creditors may be happy to accept a reduced payment. So now for round 2 with work and hopefuly will have some more news by the end of the week. Feel really down at the min....One step forward and three back scenerio!!
There is always an answer! You just have to find it!
It sounds positive at least. Maybe you will get an increase in tax credits or the bonus system will work out for you. Regardless, seems your IP is happy to work with you and if necessary go to creditors to negotiate a reduction.
You seem to have a "can do" attitude, and with that, and the goodwill of your IP and creditors, then miracles can sometimes be achieved. After all, it could hardly have been foreseen that this would happen to you.
Good luck and regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
i hope the managers and directors are taking a %20 pay cut as well,this seems intolerable and most annoying treating people like this.[V],blackmail comes to mind.[:(!]seems like another case of a company using the recession as a excuse to bully the workforce.so sorry to here about your predicament omega.having done so well setting up your iva you can certainly do without this.good luck.
Last edited by MRBLUESKY on Tue Sep 29, 2009 12:17 pm, edited 1 time in total.
That seems positive omega, hopefully they can do something to help you.
You're not the only one on here to have to take a pay cut to ensure the firm keeps going - Skippy had to have one earlier in the year.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
