I will be completing the 2nd year of my IVA in December.
I'm looking at the possibility of changing jobs with an increase in salary. If for example I was to get a new position with a salary increase of £10k, how would this affect my monthly payments?
Would I have to pay 50% of whatever extra I earn above the agreed limit or would my monthly payments be recalculated?
Any incite or thoughts would be much appreciated.
Last edited by ptwite1974 on Mon Oct 20, 2014 1:40 pm, edited 1 time in total.
Hi. Generally you would be required to pay 50% of the net increase, so your monthly payments would be recalculated to include that (don't forget on review there might be additional expenses to mitigate this increase -- extra travel costs, maybe).
Now, in most cases, any permanent increase isn't taken into account until the review and the increase is thereafter, however, some IP's do try to grab the extra money right away, so check your wording. So if, say, you change jobs in April and your review is in August, the extra money until August is all yours. But, again, carefully check your paperwork's wording.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
