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This has probably been done to death but why do some people get to keep the first 10% and some have to give 50% away no matter what they earn?

I guess it depends on the details of ones propsal. Not every proposal is the same.

Hey CPK1979, good question. I think it really depends on when the IVA was proposed and what the creditors agree to. Lots of forum members seem to have different clauses in their IVAs. I'm sure Melanie or Ian will answer it for you. X

The way things pan out now i.e under proposals we draft now:

If provision has been made for overtime in the take home pay part of your I&E - it should be 50% of the net increase i.e after increases in cost of living.

If it hasn't been included, i.e it's overtime or a bonus /commission etc that exceeds 10% of disclosed take-home pay then you keep the first 10% you receive but pay over 50% of the remainder. The problem with this one is that no account is taken for increases in costs of living - you have to pay those out of your 45%.

So, if overtime is a regular feature if possible it makes sense to take some of it into account if you can as the first option is rather more flexible than the second.

Make sense?

I work on the basis that you are allowed to earn up to 10% of the salary figure used for the purposes of the IVA before the 50/50 split. This seems more than accpetable to creditors, and fits with the priniciples of the IVA protocol which we have adapted within my firm.