Could my potential bonus payments be offered to reduce the term of my IVA ?

[whising upon a star]

Hello

I have just found out I have been promoted at work with effect from January , which is great news.

As part of the promotion my salary won’t increase but my potential bonuses will.

I know that 50% will need to be paid in to my IVA my question is although the remaining 50% wouldn’t cover a F&F if I was to offer this as an additional payment could it reduce the term ?

[plasticdaft]

It will only reduce the term if you pay back all your original debt plus fees and statutory interest.

Paul

[Foggy]

You could save your portions of the bonus payments until you have a lump sum large enough to offer as a F&F. Might knock a year off at the end, according to how much you can raise.

[Adam Davies]

Hi

As Foggy states I would suggest saving up your share of any bonus and if you save enough then look to end your IVA early with a full and final offer

Good luck

Regards

[bridgey]

This may be only applicable to my IVA (they are individual, after all ) but we're not allowed to have more than £500 in savings at any one time...

[Michael Peoples]

That sounds odd. So if you get a bonus of £5,000 and pay over half of the money as required under the terms of your IVA you are obliged to blow the rest? I have had clients build up substantial savings and use the funds to close their IVAs early. There is absolutely nothing wrong with this so double check with your IP.

[dancer]

Is the'usual' £500 credit limit being confused with savings?

[Michael Peoples]

Not sure. There is also a £500 limit on windfalls but perhaps there is a restriction written into Bridgey's proposal but I cannot see how it could make sense.

[Foggy]

That would be bordering on the ridiculous ! Part ( albeit a side effect) of life in an IVA is to re-train sensible financial attitudes, and getting into the savings habit is a good one.

[bridgey]

you all make good points... and I hadn't actually thought about it in much detail before (mainly because the idea of saving anything substantial was a pipe dream!)

I've just put an email over to our company asking the question, and will let you know whether i've been a numpty or whether I was right

[Michael Peoples]

It is rarely an issue Bridgey but it would be interesting to see what they say. Perhaps you are not a 'numpty' after all.

[bridgey]

Michael, no - I was being a numpty!

I spoke to the IVA company, and there is no limit to savings, but there is a £500 credit limit (I didnt realise you could have ANY credit).

Still, the ability to save anything significant while in an IVA is pretty much non-existent.

[Michael Peoples]

We all make mistakes Bridgey but at least you now know that when you start getting all these big bonuses that you don't have to put the money under the mattress.

[Shining]

We all live and learn every day and this forum is a great place to share information about life in an IVA and advice for living life in an IVA. Been a godsend to me as I'm sure it has to many over the past few years.

[dancer]

That's good news Bridget - I have learnt so much on here in the last year, just wish I had found the site earlier as I finish my payments in February!