morning all...I spoke to stepchange yesterday...long story short i'm in massive debt due to a messy divorce, I have no assets as the judge awarded the ex 100% and awarded costs against me!...so I have a combined debt of £50k including 15k of costs..im managing just but the ex has asked for a lump sum of 7.5k within 2 week or she's taking me for an attachment to earnings...joy!...well back to what I want to ask, I work full time and also part time in the army 19 days a year and sometimes do some overtime...step change have told me the will take all of this money...is this correct?...I don't think they are selling the fact I can do overtime but not keep a single penny of this or my army pay...regards Bungle
Hi The standard IVA clause as regards overtime/bonuses etc is that you get to keep the first 10% then the balance is split 50/50 between you and the IVA estate.
So if the net income after tax is £100 you get to keep £55 and the IVA would get £45.
Given you have no assets I would normally state that BKY might be a better option for you but the matrimonial award may still survive Bankruptcy and you might have an issue with going Bankrupt when you are in the Army.
If this is not a problem then BKY may still be a better solution for you as you will potentially write off most of your debt except potentially the matrimonial award.
thanks Lisa
i'm prepared to leave the army if I can get this journey completed quicker there's two parts to the award to the ex...a lump sum of £2900..ive already given her £30k and costs of £15k'ish would any of that be wiped by bankruptcy?...also when I spoke to CAB they said I cant do BR as I have too much money spare even though its currently being used to pay the minimum payment off my cards...this leaves me with around £250 to live each month after maintenance and rent but not bills...if the ex gets an attachment to earnings(around £320) I wont be able to service this debt...seems i'm stuck in a sticky place!..thanks for the advice
We calculate overtime differently. In our proposals you keep anything that does not increase your take home pay by more than 10% and everything above that figure is split. Therefore if you usually earn £1,000 per month you keep the first £100, if you earn £2,000 you keep the first £200 etc.
We would usually work income based on your normal job and if you are in the Territorial Army [TA] for example this is an allowance which creditors will usually exclude for income purposes. Otherwise it could cost you money when you are with the TA which would be unfair.
Bankruptcy may be an option and not affect your TA obligations but you would need to notify someone in command. The matrimonial debts are unlikely to be included within the bankruptcy but at least you could pay them back.
An IVA may be an option but you should get a second opinion from the independent sector and not just rely on the bank funded charities. You should also explain your problems to your solicitor as it seems to me that the judgment has not taken into account your entire situation.
"[b]Financial commitments – Debt and Bankruptcy[/b]
"You may be ineligible to join the Armed Forces if you have financial commitments, debts or loans that you would have difficulty in repaying or lead to financial hardship if you entered the services.
"Look carefully at the appropriate rates of pay so that you are able to work out your particular situation. The CA will ask you about this and will help you work through any queries.
"A person who is declared bankrupt (and as a result does not have a working bank account) or is insolvent may be ineligible to join the Armed Forces. Your CA will be able to assess your situation."
I've no idea what the situation is for currently serving personnel, reserve (it isn't the TA any more ) or regular.
