My company have started a SAYE scheme, I can put in an set amount each month and at the end of 5yrs I can do either one of two things:
Buy company shares at a reduced rate
Take my savings + bonus and run
The scheme can be opted out at any time, there is no real obligation, all that you lose is the interest earned.
Anyway, I contacted my I.P. after reading a previous posting on here and got the following reply:
'I am sorry to say that your creditors wont allow it as they deem it as a savings policy. I can appreciate that it would help you move forward and look towards the future but they would class it outside the T&Cs of the arrangement.'
Quite surprised at this considering that there's no credit attached, no real commitment and it was only for a tenner a month.
Just wondering what everyone else thinks ???
Last edited by Endsmeet on Wed Feb 04, 2009 2:05 pm, edited 1 time in total.
There are a couple of things and I am not sure all IP firms would take the same view. First of all if you are paying into a SAYE scheme and you are already in an IVA, the scheme will not mature until after the IVA is over so I do not believe it to be an issue. If you are only paying a tenner a month gross[as I believe these schemes are tax exempt]and this money is coming from your allownces it is really of no one elses concern. However, if you enter an IVA and you already have a scheme in place, creditors would be entitled to the benefits on maturity as this would occur during the IVA.
If you could fund it out of one of your allowances - say housekeeping, I cannot see why there should be a problem to be honest. There is nothing in IVA T&Cs which says that you cannot save money.
Thanks for your replys, I thought exactly the same as you both to be honest and as the scheme has the option of opting out and any time I couldnt see the problem.
There is no real commitment and the 5 yr term matures after my IVA has finished
I was intending to finance it by doing what Mel said, by not eating as many chocy bars per month and using that tenner to put into it.
But unfortunately my I.P. has said what she believes so I will have to honor that. [:(]
Was it your IP or an admin person who does not necessarily know the ins and outs of your case ? I would personally re-send this question and ensure you say that it will be funded from your current allowances - we are certainly putting at least £10 a month away from our contigency and clothes allowances so that we have a little buffer at all times and something to look forward to in 2012!
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
SAYE schemes can be very lucrative and seems unfair for this opportunity to be missed. If your IP still refuses to allow you to join maybe you could get a family member to make the payments at even a higher level and you could both enjoy the profits later. We have a number of clients in SAYE schemes whose parents or brothers make the payments so the benefits are not totally lost.
Last edited by Michael Peoples on Wed Feb 04, 2009 3:12 pm, edited 1 time in total.
Hi luluj,
It was my I.P. who responded, I think that its the fact that it will come directly out of my wages and not put in separately in another account as we all do with our contingency money etc. after weve paid my debts for the month
Because it will come directly out of my wages, I suppose the creditors will say 'if he can afford to do that, he can afford to pay us the extra tenner instead'
I think it is very inflexible of your IP not to allow you some small savings. I mean it's not as though it will be a vast amount of money.
I would look through your proposal and possibly chairmans report to see if it says anything there, after all, if you saved £10 out of your allowances and kept it in a jar at home, or even used a normal savings account, they wouldn't know anything about that.
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
The problem with getting someone else to join in is that they MUST be an employee of the company so if I do solely in my name and if my I.P. sticks to her decision, any payment will show up on my wage sheet.
I will try my I.P. again and make sure that she understood that I wasnt asking for an decrease in my I&E to cover it.
I can understand that you need to get your IP onside with this,as it will show up on payslips.
Fingers crossed that you can get her to see sense.
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 contacted my I.P. saying that I intended to fund the SAYE scheme out of my leftover money and got the following reply:
'No it wouldnt make any difference, your creditors would still view it as savings, thus taking the view that if you had enough surplus income to be able to put a little bit to one side, then you could afford to increase your planned monthly payment to them.
Sorry to be so restricting, but we do have to protect you by keeping within the guidelines they set down.'
Looks like I've got some clause in my T&Cs saying about personal savings etc, not to worry.....
Last edited by Endsmeet on Wed Feb 04, 2009 5:16 pm, edited 1 time in total.
I think that is terrible - I know we are supposed to pay back as much as possible, but we are also supposed to have a little bit of a life! £600+bonus I wouldn't have thought would have been much in the overall scheme of things.
As I said, if you chose to put that money elsewhere, they wouldn't know about it.
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
Hi Kallis3,
I think its the fact that its a regular amount 'pre IVA payment' thats the stumbling block.
I do put money away every month but its not a set amount, it varies from month to month depending on how much I've spent that previous month.
I reckon what the creditors are saying is that if I can give up a tenner a month for savings not contingencies, then I can pay it to them. We are supposed to have enough to live on each month and if theres anything left over ....cool, but not to include regular savings whatever the amount.
Such is life....just hope that I get the chance again in 4yrs time
I do not see how your IP could have a problem if a family member was giving you the shortfall in your wages and they then can benefit from the SAYE scheme. Your wages would then show a shortfall of about £7 from that on the I&E but could be shown as £7 family payment on the annual review. Technically you would be the owner of the shares so the scheme would not have a problem.
Last edited by Michael Peoples on Wed Feb 04, 2009 7:39 pm, edited 1 time in total.
