www.iva.co.uk

Up to now my payments have remained the same after every review however this year I have been fortunate enough to work overtime - could someone give me an idea from these figures how the extra amount I will be expected to pay over will be calculated please (my agreement is to pay 50% of any additional earnings)?

Will it be:

Joint household income = £3134 per month
Outgoings = £2745 per month (including current IVA payments)
.'. £389.00 excess x 50% = £194.50 per month

or based on my % contribution to the income/outgoings as follows:

I have earned £2034.00 per month, ie 64.9% of household income,
64.9% of total household outgoings (not including IVA payments) = £1684.00 plus
My IVA payment of £150.00
.'. my excess monthly income = £200.00 x 50% = £100 per month.

Or will it be calculated a completely different way?!

Thank you

I was under the impression extra income was based on the amount above what is stated on your last I and E review. So for example (you say it is a straight 50% not 10/50/50) you had at your last review income £1000 per month, this month you earn £1100. you would pay across £50.
£1100-£1000 = £100 50% = £50.

If it is 10/50/50 you would be allowed to keep it all as £1000 + 10% = £1100 nothing to pay over as there is nothing left.

Hi, Thanks - yes it is a straight 50/50 split. The biggest problem is that I have never had a 'regular' monthly income, it always fluctuates so I'm not sure what is classed as my usual income amount!

We have had a couple of big car repair/replacement bills this year so I worked extra hours to cover the cost rather than having to ask for a payment break - my IP has said it will all be worked out at the Review but it would be useful to know how it is worked out so that I don't have a big shock when I get the request for extra payment!

Hi Peejayel

I have the 10 50/50 clause but the 10% was not included in new payment, we paid 50/50 of new salary not old salary + 10% then 50/50 if that makes sense. Next review not until March but hubby changed job and now monthly paid will be trying to work out new payment ourselves ready to argue the case if needed that the 10% should be included before any rise in repayment. Also my understanding is that any overpayment due to overtime etc is calculated after 10% ie. if 100 extra earned then only 45 overpayment to be made, hope this makes sense.

Who are you with Karen? Normally the extra due from the likes of overtime has to be paid over within 14 days, not left until review. Permanent pay rises are, however, generally left until review.

The figure your IP considers to be your regular income will be detailed on your latest I&E statement.

Thanks - it's slightly strange in the fact that when my payments were set at the original Creditors meeting my net income was calculated using overtime worked during the previous 12 months so I always have to earn an additional £200 per month in order to pick up the amount my payments are based on!

Every year I have some overtime but at the Review my income is averaged over 12 months, if it wasn't done this way there would be some months where I have to pay over 50% of overtime & others where I don't get earn enough to pay the IVA.

This is the first year where I have been able to earn enough some months to have 'spare' income after outgoings.

Hi welshwiz,
The way I have always worked mine out is I keep 10% of whatever my i and E income stated then 50% of whatever was left. So as the years have gone on and my income has increased (by a small amount) so has the 10% calculation.
I send in my payslips every 3 months and each time they have come back with nothing extra to pay so it must be OK as I have had a small bonus each year which I paid extra over and they have not questioned the amount I paid.

Hi Peejayel

Who are you with, as my 10% wasn't taken into consideration the new payment was worked on total increase, as I haven't had a pay rise for the last 3 years, my hubby has just got new job paying quite a bit more and would like to think that the 10% before increase would give us a little bit of luxury (ie trip to cinema once a month)I still believe we should pay back as much as possible but with a little give and take!

The 10% disregard applies only to overtime and bonus payments. Permanent income increases are a straight 50% addition to the repayment.

Ok thanks Foggy

There are 2 clauses in my agreement. One relates to additional monthly income which is the 10/50/50. The other relates to the annual review which if I understand correctly means that 50% of any increase in income such as a pay rise will be added to my monthly payment after taking account of any increases in expenditure. I am with Mel Giles so no doubt someone from her team will correct me if that's incorrect.

I was assuming we were talking about overtime and bonus payment etc. Sorry I didn't mean to confuse anyone. Increase in regular income is done differently as is 50% but I thought the OP was talking about overtime.
Welshwiz I am with GT.

I am specifically talking about overtime (we haven't had a pay rise in 3 years!).
My payments are set based on an income of £1150 per month but my basic net pay is £950 so if I paid over 50% of overtime as & when I received it there could be some months where I don't earn enough to make my IVA payments & creditors aren't going to give me any money back to cover this shortfall!
I have always submitted 12 months payslips & annual net income is averaged over all 12 months.

Thanks for replies, this means increase in hubbys basic pay should be split 50/50 and any overtime over 10% 50/50. I assume at review time they will only look at increase on basic pay and not (like last year) try to average all take home pay (including overtime)