My partner works for a local authority and she has spent the past 2 years waiting for them to carrying out a review of her job due to equal pay claims. They have now offered her Backdated pay (£15000) with additional compensation + interest (£3500), in total £18500 after tax and NI. This money is in effect wages that she would have earned over 5 years,I was under the impression on reading several forum questions and my own interpretation of her IVA that this could come under the 10/50/50 ruling as its actual wages earned but I have heard from the admin staff of our IVA Company today that our supervisor says all is payable into the IVA,we have asked for clarification but in the meantime My question is what are other peoples view on this situation.
Hi Idc! I would read your chairman's report and see what it says re bonus or windfalls etc! I know this is backdated wages and you may have to pay it in! Could you offer it as full and final? Good luck
I agree entirely with Andy and I am sure your IP can reach an agreeable settlement perhaps by a full and final as suggested by the others. You could give up your claim to any of the money in return for creitors closing down the IVA. A sensible compromise.
I assume this is an interlocking IVA. How long have you been in the IVA and was your partner pursuing the backdated pay claim prior to the IVA? If so this was an asset at the time of the IVA and should have been dealt with in the proposals. If it wasnt then it is a potential irregularity that your supervisor will have to deal with. I agree with Andy (and the creditor logic) this is potentially a windfall in relation to the pay earned pre-IVA, but there is an argument that the element of the claim in relation to any period after the IVA was accepted could be dealt with under the 10/50/50 (as you call it) rule.
James Kaye and Nick Morgan, Insolvency Practitioners with over 30 years combined experience.
I think that your partner may be a client of my firm, in which case I concur with the advice provided by my fellow IP. We were not aware of the claim when your partner's proposals were being presented, hence why this was not specifically addressed at the time. I don't see any argument for the money being dealt with under the 10%/50/50 rule I am afraid
Yes Melanie she is currently with yourselves and in good hands may I add. Were abit gutted that this is seen as a asset as weve seen people on here with exactly the same circumstances and been told that as it wages its the 10/50/50 but thats a discussion I need to have with our supervisor and not on this Forum once im back home.
Again thanks all for your replies.
I don't know enough about the technicalities of what a windfall is!
I would have thought it wouldn't be income in the same way as the salary you agree in your contract...so in that sense it is extra. In that sense you are lucky to be getting it and I always associate windfalls with luck...not very technical I know LOL x
I really think this is definitely one for the IP to deal with direct. We will all have our own interpretations and I would hate to give false hope to IDC and his partner.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
