I have 7 payments left of my IVA - nearly there yay! I pay £200 a month. I've just been advised I may be getting a £10,000 bonus (around £8000 after tax). I know if this happened I would need to declare this and 50% would be taken. However, this would be £4000 and I only have £1400 left to pay over the next 7 payments. However, I am only repaying £12,000 of a £32,000 debt so would they still take the £4,000 and merely increase the amount of the original debt that I pay? Or would they take the £1400 just to satisfy my agreed amount? Thank you.
Your would have to pay half the bonus [after claiming the 10% first] over even if it was the last payment to your IVA. You could possibly offer £1400 from your share and close the IVA down which I am sure would be acceptable.
During the IVA you always owe the full original debt plus fees. Only at the end is anything unpaid written off. So they will take their share of the bonus and this will simply increase the amount of debt you have managed to pay back.
Unlike Michael, I cannot see them accepting the £1400 and missing out on an extra £4000.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy.
Natasha's share of the overtime would be excluded from the IVA anyway so no reason why she could not use some to close it down. Otherwise she can keep the £4,000 and just pay the £200 per month as normal. Certainly worth putting forward.
Can I pose another question please? If my partner was to offer to pay the £1400 on my behalf as full and final payment and this was accepted, how long would it then be until I got my completion certificate? He's not included in the IVA as I was already 2 years in before we met.
The reason I'm asking this is as the bonus, if it does materialise, wouldn't be for a couple of months. If I could fully complete and ave my completion certificate before I get the bonus, would I then get to keep it all? As if this is all ok and above board of course I'll do what I can to keep as much of it as I can. However, if this is something you think would be against the terms of my IVA then I wouldn't pursue it.
It would take a few months to process anyway to get acceptance so they may think you are too close to the end given costs to call the meeting. It can take up to six months from then to complete but this seems to depend who you are with. I understand you wanting to keep as much as you can but at the end of the day your creditors are wiping off thousands that you agreed to repay with interest when you took it. Paying back as much as you canis part of the agreement in my opinion.
A bonus payment is taken into account in the month in which it is paid to you -- if this is after the certificate has been issued then it will all be yours.
Indeed, being income related it should be discounted from the arrangement after you have made your final payment. As I understand it, it is normally only the obligation to pay over windfalls that continues post last payment. However, the application of that will depend upon the wording of the variation bringing about the settlement.
The issue of the certificate depends upon who you are with: Many take a few weeks, most take around 3 months and GT will take at least 6 months.
Last edited by Foggy on Wed Jul 01, 2015 5:02 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
