You should be able to keep anything that does not increase your net take home pay by more than 10% and split the rest with creditors. Check with your own IP to be sure.
I am reluctant to say too much on here as I don't want to be identified, but when I did approach my IP regarding a potential increase in hours I was told I had to give them everything over 10%.
I have the potential to take on a new role at work but there seems little incentive if I am going to see very little return for it! (10% of sod all isn't worth working for )
The end is in sight - months not years!
Looking forward to a brighter future for my children!
OK --- if you have a temporary wage increase (overtime, bonus or temporary hourly rate rise) you will, if you have the 10% 50/50 clause, keep the amount equal to 10% of normal monthly take home, then split the rest 50 / 50.
So £1000 take home usually ... you get a £200 bonus.
You keep 10% of the £1000 normal take home (£100)
Then split the remaining £100 50/50
That way, of the £200 bonus, you keep £150.
If you have just a 50 / 50 split, then you keep £100.
However ..... if you have a permanent pay rise, this is usually dealt with at annual review, when your repayment will increase by 50% of the net rise. any rise between getting awarded it and annual review should be all yours ( though some IP's will go for the 50% increase right away and you need to check your terms regarding this).
I would ask your IP to highlight the clause under which they propose to take all but 10%.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy - I don't have any more annual reviews, as I am in my final year and close to the end.
Due to the proximity of the end of my IVA I have been told to just ring up and make an additional payment over the phone for each month that it applies to (it is a permanent increase in hours) of everything I receive over the 10%.
While I will do that if I have to, I wanted to make sure that I had been given correct information as I obviously don't want to be working my backside off and seeing nothing in return for it if I should in fact be getting to keep more than 10%!!
I have read through all the paperwork I have ever been sent and can't find anything which references the overtime or payrise rules. We have been through so many IPs that I have lost track of who has told me what!!
The end is in sight - months not years!
Looking forward to a brighter future for my children!
(to put it into perspective, I am going to be more than doubling my hours. If, for sake of argument, I had been doing 25 and will now be doing 55 but will in effect only get paid for 28, it doesn't really seem worth the extra stress, time away from family etc ! I'm trying to rationalise it that it's only for months until the IVA ends.
I'm not trying to get out of paying money into the IVA, I'va already paid far more than was forecast - over a third extra on both mine and my partner's to date; I just don't want to be leaving myself short!)
The end is in sight - months not years!
Looking forward to a brighter future for my children!
Another way to look at it is that you only have to make the sacrifice for a few months and then it will all be yours! If you refuse the rise because of a few months IVA payments, you will lose out far more in the longer term.
Anyway -- I would ask your case handler ( I doubt you have ever spoken to an IP, as, it seems, many firms keep them locked away.) to point out the exact clause under which they are acting.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Payrises are normally covered by the annual review but you do not have one. Taking the job will mean a drop in tax credits, increased travel and childcare costs etc so a simple 10% 50/50 rule would be wrong. I would think that a total review at this time would be fairest with an increase of 50% of the additional disposal income until the IVA is over. As Foggy says you would be the beneficiary over the long term so best of luck.
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