www.iva.co.uk

Can someone here advise as to where the current practice of paying over 45% of net receipt of this income into a IVA came from.

The 45% is basically that the debtor keeps the first 10% for himself and pays over 50% of the 90% balance.

It is certainly not in the IVA Protocol.

Wasn't there some confusion a while ago where people thought that the 10% was based on the uplift and not the basic salary? Perhaps this was not explained terribly well by their own IPs.

Just to clarify that under the IVA protocol you are allowed to retain up to 10% of your basic salary - so if you earn £1,500 per month you can keep back £150 each month from additional earnings before having to divide the balance on a 50/50 basis with the IVA supervisor.

Thanks for that post melanie, that has made my situation a little clearer and feeling better.

Melanie - the Protocol is silent on Overtime and Bonuses - we looked at it yesterday at the Technical Sub Committee Meeting where are you getting the information from?

I have no information whatever in my proposal or chairman's report regarding this 10% rule, in fact I am not sure there is any definitive instruction regarding extra money earned! at the moment I am paying 50% of any extra money into my IVA which I think is reasonable.

Would be nice if there was a set of rules that were uniform but I fear this would have an adverse affect on many people's IVA's?

David

On 18 July 2007 TiX issued a directive (albeit prior to the introduction) of the IVA protocol, as to the requirements of "TIX Compliant IVA". The treatment of overtime and bonuses in line with my comments above was largely accepted by the profession, on the basis that it was relatively generous to the debtor and that if it was left out of the proposal they would modify it in anyway and they probably have influence on over 80% of proposals issued.

The majority of IPs have adopted this as part of IVA protocol for this reason - and perhaps the Standing Committee ought to firm up any ambiguity on this point when you next all meet.

If the IVA protocol is silent on overtime and bonuses, why is this - and what does it think that IPs and creditors are actually doing out in the field?

As I have outlined elsewhere, my IVA was silent, and in the court papers a 50% clause was inserted.

The 45% is not strictly true either, as the %age will go up and down dependant on your starting wage and the amount your earn in addition. I'd like that 10%, but never mind!

Thanks Melanie - it will be a point to put to the Standing Committee in due course. Thank you.

Mine is 10% over and above my normal wages and then 50% of the rest.

That is the clause we are talking about Jan - and evidence that Payplan have also adopted this "protocol".

Mel - my IVA is also with payplan. They have not therefore adopted this 'protocol'

Our IVA's, both are protocol compliant.

The IVA protocol was only introduced in February 2008. Was your IVA commenced earlier than this ytsejam?

According to a post at the end of January, yjetsam's IVA was approved shortly before that, so it is after the protocol was introduced.

Strange that yours is based on protocol and his/hers is not - from the same firm. Unless there were specific reasons of course, as not all people have protocol related suitability.