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I earned a bonus last year but it was not declared. Had the money and put it to good use. I realise that this was wrong and I am completing my review now. What will the supervisor do when they realise this?

They will likely either ask you for 50% of this money, increase your monthly payments to recover it over a period of time or add a payment / some payments on at the end of your IVA to make up for this.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi mb2

It depends on what your IVA modifications/variations were when you entered into the IVA. If, for instance, your IVA states that "any windfall in excess of £500 must be paid over to the creditors", then I am afraid you may be required to pay it over. Having said that, you have not mentioned how much the bonus was. There may be another clause in your IVA which may say that any overtime/bonus's etc earned, 50% of it must be paid into your IVA.

Perhaps if you gave a little more information, an expert will be along to give you the correct advice.

Sue

mb2 wrote:

I earned a bonus last year but it was not declared. Had the money and put it to good use. I realise that this was wrong and I am completing my review now. What will the supervisor do when they realise this?

There is no specific surplus %age. A single creditor (one that I owned £450 to - out of £74K) requested that ANY surplus be included. Surely this isn't appropriate.

If you only owed one particular creditor £450, could I ask why you were not able to pay them straight off before entering into the IVA. The reason I ask this is that once you entered into your IVA, your IP would have told you to stop all payments to any of your creditors ie credit cards etc, which would have meant you could have paid them off at that time. I agree with you that a creditor with such a small amount of money asking for ANY surplus to be included seems a little inappropriate to me. What did your IP say about this?

Sue

Sadsack wrote:

If you only owed one particular creditor £450, could I ask why you were not able to pay them straight off before entering into the IVA. The reason I ask this is that once you entered into your IVA, your IP would have told you to stop all payments to any of your creditors ie credit cards etc, which would have meant you could have paid them off at that time. I agree with you that a creditor with such a small amount of money asking for ANY surplus to be included seems a little inappropriate to me. What did your IP say about this?

Sue

I decided that any payments like the one you suggested would have been preferential. To be honest, I haven't discussed the clause with the IP. Obviously when the bonus issue raises it head I am going to have to.

I am not too sure if it would have been "preferential" in that payment to them would have taken place prior to the acceptance of the IVA by your other creditors. However, thats history!!!!!!!!!

May I suggest that when you have your review with your IP that you ask them to propose a variation to your creditors to waive this "ANY surplus" clause that you have to perhaps change it to read 50% of surplus. It may be worth a try.

Good luck and let us know what happens!!!

Sue

I think for future bonuses or overtime the best way forward would be to contact your I.P. They can then decide whether you should send the money to them (to put towards your IVA straight away) or whether you should put the money aside until your next review.

Hope this information is of use

Regards. IVA Experts

If one of my clients spent a bonus without declaring it, in the knowledge that they were required to account for 50%, then I would be a little concerned. You will need to explain your reasons for witholding the money from your IP, which effectively is a breach of trust. They will then advise you how best to make amends to rectify the default. And do make sure that this does not happen in the future, or your IP is likely to want you to submit your wageslips each month.

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

Thanks everyone - I'll post feedback once the IP has completed the review.

Your welcome MB, all the best.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp