Just got a quick query for you all, - I have always presumed that the seemingly common "you get to keep first 10% and 50% of the rest" rule applied to additional income in my IVA, however while looking through my proposal today I noticed that the only paragraphs which refer to extra income are:
8(5) You must inform the supervisor at any time that you are in receipt of additional income. You must come to a
satisfactory arrangement with the supervisor as to what increased amount should be paid into the arrangement. If
you do not do so you could become liable as detailed in paragraph 10(9).
And:
10(9) The supervisor on failure to reach agreement with you in respect of your obligation under paragraph 8(5) will
immediately issue a "certificate of non-compliance" unless the supervisor believes a further creditors meeting should
be held. Any such creditors meeting should be convened within 30 days of the supervisor's review of your annual
financial circumstances.
As I understand this, my contribution from any additional income is still negotiable, as there is no record of any exact figures recorded. Does this sound normal to people, and can people see any possible good/bad points about have a "loose" arrangement like this? Also, - is this common?
That's a woolly clause which is open to misinterpretation!
If you do receive additional income, you must inform your IP of this and between the two of you decide how much your payments will increase to. I am sure that there will be a happy compromise somewhere along the way!
Thanks Melanie, - I must admit I was quite surprised at how nonsepecific that clause was, especially considering that my proposal was drafted by one of the largest firms, I would have thought that they would use a standardised proposal with watertight clauses to reduce potential negotiations further down the line!
Use it to your advantage Dave - most IPs are not fans of any form of equity release at the end of the IVA, as this is often unachievable and just causes all of us more work which creditors do not want to pay for.
