I have an IVA. Can my practictioner increase my monthly payments if I get a pay rise even if the whole amount is due to be paid off within the 5 years. I realise this would shorten the length of my IVA, however things are tight. I am currently paying £732 a month.
Hello and welcome. The answer lies within your agreement and I suspect that this is what you agreed to. Usually they will take 50% of any permanent rise, so you will be a little better off.
If things are too tight do discuss your I&E with your firm.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As Foggy says you should discuss this with your IP. He/she has discretion to reduce payments by up to 15% where there are problems and a review of the I&E may not lead to an uplift anyway.
I was in a similar situation recently and what my agreement, and most others I believe, says is that you have to pay 50% of any pay increase which is over and above a 10% increase of your take home pay. So for example, if you earn £1500.00 a month TO TAKE HOME, and you get a pay rise of £200.00 a month to take home, that means you've gone £50.00 over that 10% threshold, so therefore must contribute £25.00 a month to your IVA, which is 50% over and above the 10%.
However if your payrise isn't more than 10% of your current monthly take home pay, you get to keep it all!
Last edited by glendvd on Fri Nov 29, 2013 1:40 pm, edited 1 time in total.
Hi Glen. The clause you are referring to usually relates to overtime and periodic bonus payments. Permanent payrises are dealt with differently, at review generally. The IVA will take 50% of any net increase in income.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
That is not the way our proposals or protocol ones are written. The 10% 50/50 rule applies to bonuses,overtime, commission or similar and not to pay rises. Pay rises are dealt with at the annual review stage and if you get a pay rise of £200 a new I&E is done. If your expenses have gone up by £100 you are £100 better off so your monthly payments increase by 50% of this surplus i.e. £50. The payments increase after the review and not when the pay increased.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
That is not the way our proposals or protocol ones are written. The 10% 50/50 rule applies to bonuses,overtime, commission or similar and not to pay rises. Pay rises are dealt with at the annual review stage and if you get a pay rise of £200 a new I&E is done. If your expenses have gone up by £100 you are £100 better off so your monthly payments increase by 50% of this surplus i.e. £50. The payments increase after the review and not when the pay increased.
This is interesting, because Harrington Brooks have started to take 50% of my over and above 10% pay rise already (i only got it starting the end of october, a month after my iva started so not aware of payrise when IVA began), I'm not due an annual review until september 2014. Are you saying they shouldn't be taking this from me?
Last edited by glendvd on Fri Nov 29, 2013 4:05 pm, edited 1 time in total.
It really depends on your proposal so you should seek clarification from your own IP. However that is how it would be worked here although you do always need to keep your IP informed and you cannot refuse any reasonable request. It is certainly worth reading over your proposal and asking the question.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
It really depends on your proposal so you should seek clarification from your own IP. However that is how it would be worked here although you do always need to keep your IP informed and you cannot refuse any reasonable request. It is certainly worth reading over your proposal and asking the question.
I thought it best to keep them advised yes, so I did. However I have just read over my official proposal, and lo and behold it doesn't mention pay-rises in the section about bonuses and commissions, I was sure it did, I must have read it wrong when I agreed to the rise in payments. However, I don't think i'll bother querying it with Harrington Brooks as the rise in monthly payments is only £4.50, hardly worth the phonecall to argue the point.
