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I have been told that if you receive a work bonus 50% of it has to be handed over to the supervisor does this get paid to reduce the total of the iva therefore reducing the years or is this extra ontop of the total iva meaning you end up paying more than the IVa agreed amount

paula -

Yes - the 50% Overtime / Bonus condition is pretty standard. Any Overtime / Bonus paid over does NOT shorten the overall term of the IVA but it does mean that you are paying back more of what you owe. Also - if you have a "Minimum Dividend" modification the overtime / Bonus payments will help to ensure that there is not a shortfall at the end of your IVA term which might otherwise require additional payments.

Hi
The only time that a bonus payment will reduce the term of your IVA is if you were paying a 100p dividend,or close to it.Otherwise it will mean a higher dividend to your creditors,as Optomist has correctly stated
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Hi Paula,

It must be remembered that even though you have a certain p/£ dividend, in an IVA you must pay back to the creditors as much as you can. Its only after the 5 years (usual length of an IVA) is completed that the remainder of the debt gets written off, not when your IVA is accepted.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/