Hi, if I was to accept a new job on a higher salary can anyone advise what happens during an IVA. Using an example of a new job paying 400 pounds a month more does the following apply:
For initial months the 10/50/50 rule applies for additional income? That is, I am allowed the initial 10% extra then half goes into the arrangement and the other half I keep?
Then, at annual review time my standard payments would increase given the review shows more disposable income? Thanks all for any input.
A permanent pay rise isn't covered by the 10/50/50 rule and will depend upon how your arrangement has been worded in this respect. Usually any extra income due to the rise is all yours up until the annual review when your payment will increase by 50% of the net rise. Some IP's write the arrangement in such a way that 50% of any net rise is due right from the start. And some have it written as per the first example above, yet try to implement the second !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You must declare any additional income at any time. If you have a new job it is probably best to do your annual review a few months early as you will have different costs for travel etc as well which may affect how much you would owe.
Hi, it's always best to keep your IP in the loop of any changes to prevent any surprises at review time. Hopefully you'd be able to keep all extra monies until review time and build up a little bit of contingency.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lou3
You must declare any additional income at any time. If you have a new job it is probably best to do your annual review a few months early as you will have different costs for travel etc as well which may affect how much you would owe.
I agree that the rise must be declared at the time, how my earlier response still stands.
During the course of my IVA I had two IP's from different companies and each did what I described earlier. My pay rises were effective in the April and my review was in the December and, for 8 months I was allowed to keep all of the rise.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks all. I will absolutely be keeping my IP in the loop but I just wanted some initial feedback on here to see what the impact could be before making any decision on the job. Either way it seems that any permanent salary increase whether by promotion or job move will benefit both creditors and myself. I know my travel expenses wont change much therefore any increase will lead to more disposable income.
How it will work will depend on which company you are with. If you are with Payplan or Cleardebt then you will be expected to pay extra from the date of the first increased paycheque.
Depending on which benefits you most you can choose to allow the payslip reviews to go ahead every 3 months on the 10/50/50 basis or do an immediate review to take into account any other expenses.
Congratulations from me if you accept it! 50% of increase is the probable amount to be added to your monthly payments although increased codts associated to new job should be taken into account first.As others have said inform your IP and ask them to undertake review for you
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I agree with Foggy that these things are usually dealt with at the annual review. However your own IP will know your case best so keep them informed and hopefully they will keep you right.
