Unexpected increase in overtime

[adam090376]

Dear All
I wonder if you can help me.
I need to phone my IP (Accuma)on monday to discuss a large increase in overtime for the next couple of months as the company has won a contract it did not expect to win and so the overtime will be needed in order for us to complete the work.
Just to give you the background information. I currently pay £308 a month on a £32-33K debt. 52P/£. I did not have a 50% bouns or overtime modification in my proposal as I did not forsee me doing much overtime at the time of the proposal/meeting.
What I want to know is if I do this overtime and say earn £200 extra a month for six months what sort of rise could I expect my payment to go up to when I have my annual review in June/July 2008. Should I keep some of the money back?
Please help
Thanks
Regards
Adam

[MelanieGiles]

Hi Adam

I am suprised that you do not have the 50% uplift provision! Did your creditors not modify your proposal at the creditors meeting? Have a look at your Chairman's Report to clarify this.

Given that you say that the overtime is a one-off, I would put 50% aside each month into a separate deposit account to pay over to creditors as a gesture of goodwill, but do take advice from your own IP who may have differing views.

As this is a one-off, you should not be required to increase your payments as a result of these extra earnings, as you will not be earning these sums at the time of your review, but your IP and your creditors will be appreciative of your gesture, and you can then also keep half the money for yourself.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Cybus]

It will take discipline, but what Melanie is suggesting is right.