Hi. I have had an iva now for 6 months and everything is going really well. Im living to my budget perfectly. The thing is ive just been offered a job that is £ 4 an hour more than im earning now and its better career prospects. Would my iva take all of the extra income off me or would it work similar to the overtime rule. Any advice and information is welcome. Many thanks.
Your proposal document should outline what happens if income increases. Normally you would retain some of it, possibly 50%, .... have your expenses increased at the same time ? Has the change meant increased transport costs or other increases ... often increases can be absorbed in the change of expenses
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Usually permanent pay increases are taken into account at annual review at which time your payment will be increased by 50% of the net increase. Some IP's do try to take increases early, but, as luluj says, it should be detailed within your paperwork.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Congratulations on the new job and do not let the IVA hold you back. You could do a full review now taking into account any new expenses such as travel, clothing, childcare etc. You could then agree a new payment and the new income figure would then form the basis for the 10% 50/50 rule going forward. You could also possibly wait until the annual review but as the others say it depends on your proposal so have a word with your IP.
Last edited by Michael Peoples on Thu Aug 28, 2014 10:43 am, edited 1 time in total.
