www.iva.co.uk

Hi we're in the process of taking out an iva, on the proposal it has a 'windfall clause' that states assets, gifts or material sums of money (excluding normal regular income): if I receive...sum of money (over £500) I need to inform the supervisor

My question is what about bonuses, my husband asked at our meeting with the iva company and we were told that anything over 10% of usual amount we would have to pass 50% into the IVA but I can't find anywhere on the proposal where it states that.

Can any one offer any advice, I didn't find this till after 5pm so can't ring our iva company till monday

Hi, i'm in the process as well and my understanding is that the 1st 10% of anything over the normal wage I get to keep , then the balance is split 50/50, and that has to be paid within a nominated period (think it's a couple of weeks). As I say i'm still in the early stages so may have got that slightly mixed up

Thanks for the reply, yes that's what we were but it doesn't state that in our proposal so I'm concerned now.

Hmmm, wpould have thought that £500 is a rather large sum to be allowed to keep without sharing.

Mine is anything £500 and over too Rod, hoping for a win of £499 on the lottery one day x

Fantastic Lesley, better still win a few million and collect it in £499 cheques every week until IVA is clear

Basically they divide income into "earned" (salary, overtime, bonus payments) and unearned ( lottery wins, inheritances etc). You cough up 50% of earned income, over and above your usual base salary ( some proposals allow you to retain the first amount of 10% of earnings, then split the rest 50/50 ). Windfalls are generally dealt with by allowing you to retain the first £500 and handing anything over and above this to the IVA. Again, some proposala will vary, usually regarding the £500 retention.

I agree Foggy all proposals are individual and it's best to refer any windfall to your own proposal/IP for clarification.

Lol @ Rod x

Thanks all this is what I hoped to hear wanting to put 50% of bonus aside for any unexpected expenses.

Ahhh that sounds more like what I remember them telling me now, need to get it in writing (which hopefully wont be too far away)

As others have said hopefully you will have the 50% rule but to be sure make sure you inform your IP of any additional earnings / money as they happen and oay over the amount you owe your creditors as you go - that way you know what is in your account is yours to do what you want with !

Mine has £500 Clause & 10% 50/50 for overtime. As others have said it's individual so check paperwork!! My bonus with my company was included in overtime version as it was in same payslip & as under £500 they stood to gain from doing this. However as a nurse my payslips are checked every 6 months & averaged out.

Ask your IP to use the IVA protocol style for the proposal which makes it very clear that a bonus is dealt with under the 10%/50% rule and is not deemed to be a windfall.