www.iva.co.uk

What happens in an IVA if your job is basic salary plus commission based? How is the monthly payment set? And how would it work in a bankruptcy IPA?

hi i earn a basic wage plis commision and what GT did with mine was see what i earnt for a year by my p60 and averaged my wages for the month as i also get paid every 4 or 5 weeks so some payslips looked like i earnt loads and come review time they will see if i need to pay any extra across as obviously commision is not always guaranteed hope this helps [:)]

Hi and welcome.

Your monthly payments should always be calculated around your basic wage as you cannot always guarantee commission.

With the commission, it is normally 10% plus 50/50 over and above your normal wage that will be considered for payment across.

As to BR, you would be expected to pay across all disposable income if you have more than £20 a month and I assume that commission would have to be paid across as well.

Hopefully one of the experts will be along to advise later.

I agree with Jan here, I am not with GT but with melanie giles and she always works your IVA payment out on your basic salary only anything over and above that is treated with the 10% 50/50 rule I(so you can keep a further 10% and split anything above that 50/50 into your IVA), I don't earn commission but get enhanced payments for unsocial hours that I work, my IVA is based on my basic salary only

There are a number of ways of dealing with commission. It's probably best to speak to a few IPs and see how they treat it. Then you can decide which method feels most suitable. x

3 months this year i have been paid upto £200 less then what they worked out as my basic so if i am supposed to pay 10% 50/50 split how would that work if normally my wages basic is worked out as £1200 a month plus my commission which is fine if say i get £1350 total basic and commission, but doesnt work if i get paid £1098 total basic and commission that is why i will wait for my review yearly and pay anything across as obviously they arent gonna give me back money just because i earnt less lol if that makes sense [:D]

Hi Lee.79 - as BOL say different IPs work differently but the one thing yu want to make sure is you don't overcommit yourself and any good IP will not let you do that. We use to 10% 50/50 rule but there has also been occaisions where 50% of the lowest commission amount paid in a given time is used if commission is always paid very regularly and the disposable income relies on it however this is only when we are sure it is regular and part of the contract.

Each case is treated differently so speak to a few companies to go over your details and see what your options are.

regards,

Hi,

I had a similar situation whereby my salary was supplemented with a monthly bonus paid as a % of salary. This was fine until the company changed it to a quarterly payment, I basically averaged it out on my annual review dividing by 12, however it meant that there were some months where money was particularly tight.

I think it is dangerous to take commission/bonus into account with your basic wage becuase if for any reason you don't earn it, then its a recipe for disaster x

I agree footiemad - a proportion should only ever be considered if it is guaranteed or there is a convincing argument that a small amouint will always be paid - as always, each case is treated on its own detail. In general though, it is not advised to prevent anyone being overcommitted.

Thanks for the replies. My commission is based on a percentage of sales each month, but the more I take the percentage also increases, so some months I can earn double even treble my basic yet if I don't hit the minimum sales to earn commission I earn just my basic. I have been told however if I went bankrupt my IPA would be all of my DI based on my basic but I would also be obliged to give all of my commission over to the trustee every month.