Posted: Sun Oct 26, 2008 2:09 am
Having read various posts I thought I would post what the Protocol states:
10.2 The IVA provider should ensure that they are provided with copies of payslips(or other supporting evidence) every 12 months. The supervisor is required to review the debtor’s income and expenditure once in every 12 months. The debtor will be required to increase his monthly contribution by 50% of any net surplus one month following such review. The supervisor will also be able to reduce the dividend by up to 15% in total relative to the original proposal (without referring back to creditors), to reflect changes in income and expenditure.
10.3 Where the individual has failed to disclose exceptional income, the term of the IVA may be extended by up to a maximum of 6 months to recover any sums due, without any modification being required.
TIX's usual modifications are as follows:
Overtime/Bonus/Commission
The debtor shall report any overtime, bonus, commission or similar to the supervisor if not included in the original surplus calculation and where the sum exceeds 10% of the debtor’s normal take-home pay. Disclosure to the supervisor will be made within 14 days of receipt and 50% of the amount (over and above the 10%) shall then be paid to the supervisor within 14 days of the disclosure. Failure to disclose any exceptional overtime, bonus, commissions or similar by the debtor will be considered a breach of the arrangement and the supervisor shall notify the creditors in the next annual report with proposals for how the breach is to be rectified.
It is not therefore the first 10% of the bonus, etc you can keep or that you deduct 10% of your annual salary from the bonus before introducing 50% of the remaining.
I know you all might argue that it does not specify monthly or annual but that will be up to your supervisor to deal with.
An example
Your income £1,000 net per month.
As per the modification, you can keep anything up to £1,100.
Anything earned above this level 50% needs to be introduced into the IVA.
So if you earned £1,828 - £1100 = £728 / 2 = £364 is to be introduced that month into your IVA.
10.2 The IVA provider should ensure that they are provided with copies of payslips(or other supporting evidence) every 12 months. The supervisor is required to review the debtor’s income and expenditure once in every 12 months. The debtor will be required to increase his monthly contribution by 50% of any net surplus one month following such review. The supervisor will also be able to reduce the dividend by up to 15% in total relative to the original proposal (without referring back to creditors), to reflect changes in income and expenditure.
10.3 Where the individual has failed to disclose exceptional income, the term of the IVA may be extended by up to a maximum of 6 months to recover any sums due, without any modification being required.
TIX's usual modifications are as follows:
Overtime/Bonus/Commission
The debtor shall report any overtime, bonus, commission or similar to the supervisor if not included in the original surplus calculation and where the sum exceeds 10% of the debtor’s normal take-home pay. Disclosure to the supervisor will be made within 14 days of receipt and 50% of the amount (over and above the 10%) shall then be paid to the supervisor within 14 days of the disclosure. Failure to disclose any exceptional overtime, bonus, commissions or similar by the debtor will be considered a breach of the arrangement and the supervisor shall notify the creditors in the next annual report with proposals for how the breach is to be rectified.
It is not therefore the first 10% of the bonus, etc you can keep or that you deduct 10% of your annual salary from the bonus before introducing 50% of the remaining.
I know you all might argue that it does not specify monthly or annual but that will be up to your supervisor to deal with.
An example
Your income £1,000 net per month.
As per the modification, you can keep anything up to £1,100.
Anything earned above this level 50% needs to be introduced into the IVA.
So if you earned £1,828 - £1100 = £728 / 2 = £364 is to be introduced that month into your IVA.