Hello all this may take some explaining so bare with me.
On my original proposal my earnings were £1500 per month.
From this I could earn an extra £150 before paying in any extra to the iva. ie 10% rule.
Two years later my income is £1600 but my payment remains the same due to increase in expenditure.However, I am still only able to earn £1650 before paying in any extra income. Should it not be 10% of the new earnings.
I know how you feel as it was always a bone of contention when in our IVA as we were always told it was based on the original earnings despite increased costs......I think your own IP needs to give you the clarification needed for you on this.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Thanks. I have asked the question and was told it is based on original proposal. However, if it get a payrise next year of say £50 that will take me to £1650. This then means there will be no 10% rule at all. CAN THAT BE RIGHT?
The monthly annual overtime/bonus clauses do seem a bit inequitable. In my case I am just going through the IVA proposal process and as I understand it because my bonus is paid annually rather than monthly then I will have to turn over under the 10/50/50 rule.i.e My annual bonus is about £1900 net per annum about 158 per month. If I was paid the bonus monthly I could keep it all as its well below 10% of my monhtly income. However as it is I will have to pay £855 into the IVA. i.e 1900-190(10%)=1710 split 50/50 = 855. Might not seem fair but I suppose if all goes well my creditors will be writing off about 55% of what I owe them.
Last edited by MikeyM on Thu Oct 11, 2012 7:22 pm, edited 1 time in total.
Hi Mikey - I know how you feel. I'm penalised for receiving an annual rather than monthly bonus too. My 10% disregard has changed with salary increases though so it is always 10% of my current salary.
That seems very odd, my pay increased in March and at our review in July they have calculated the 10% extra I can earn on my new pay not what was in the original proposal, I would question them again on these and see what it says in your proposal
I feel with the help of the professionals some things that are highlighted do get sorted as we as persons in an IVA know what to say to the staff of the IP company which in turn helps sorts things quicker. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hello not posted for a while. Anyway the issue above has raised its head again. Can anyone advise if the statement below is correct as that is what my case manager is telling me.
Additional income is not based on your monthly salary it is calculated using your salary amount at the time of your initial/variation meeting and it will change if your outgoings increase/decrease.
To simplify matters my income is £2200 with an Iva payment of £529. They are telling me anything over £2199 has to have 50% paid over. I think it should be anything over £2420. Any advice appreciated.
It cant be that way because you are not then paying over 50% - you are paying more.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
