Page 1 of 3
Posted: Thu Oct 22, 2015 4:55 pm
by Metrics
Tomorrow I have my creditors meeting for an iva. Ive been told today that at the end of the month I will get a 5k payrise which will also be backdated to august. I still need the iva
What do I do? As I do not have this in writing. However I have spoken to our payroll and they have the paperwork.
Help....
Posted: Thu Oct 22, 2015 5:24 pm
by Michael Peoples
This depends on your proposal and some IPs interpret things in different ways. However usually payrises are dealt with at the annual review so your IP may not need notified until next October when the review takes place. Any increase in payments can then be implemented going forward.
However you have an obligation to inform your IP of any significant changes in circumstances so this may be deemed one and a new I&E carried out straightaway. At least your payments can only increase by 50% of the additional surplus so had the IVA been done next month you would have lost the lot.
There is a possibility your IP will look at the income under the 10% 50/50 rule which would be better for you than a full review but the one that works best for you is it is dealt with next year. The backdated pay could then be dealt with under the 10% 50/50.
Posted: Thu Oct 22, 2015 6:51 pm
by Metrics
Ive just reread my post and surprised you made sense of it. Post in a panick
I've spoken to my IP and they have advised that it will not be taken into consideration tomorrow as I have not actually received any money
The way they are treating it is to perform an income and expenditure in 3 months time. They advised that because this is a promotion there will also be some flex on the expense side
What an emotional week. Just need all creditors to say Yes tomorrow and will be a good week in a strange sort of way
Posted: Fri Oct 23, 2015 10:29 am
by Lisa Thomas
How did it go?!
Posted: Fri Oct 23, 2015 10:45 am
by kallis3
Hope it's gone ok.
Posted: Fri Oct 23, 2015 11:32 am
by Metrics
It's been accepted but amended to 6years. I'm just thinking about if I should accept the modification. 6 years is a long time
Posted: Fri Oct 23, 2015 11:43 am
by kallis3
It is a long time but, at the end of the time you will be debt free!
Mine ended up as six years and I just looked on it as a loan term.
Posted: Fri Oct 23, 2015 11:45 am
by longslog101
what would the extension over the extra year cost you ? the 12 extra payments.
Will the new salary increase be treated as 10/50/50 for that term, or do they view it as you introducing an extra £5k each year for 6 years, being an extra £30k ?
Remember if you have equity 6 years could become 7 years if you have to extend for a furthe year because you cant re-mortgage.
Also, does your agreement refer to 2014 protocols or 2013 ones with no requirements to take a secured loan to release equity (which could tie you in even longer to a loan once the IVA is finished) and if you pay over 100p in the £ does it state you wont be charged statutory interest ?
Those are the things I would want to know the answer to before making a decision.
e.g. the no interest and a company using the old 2013 protocols over the 2014 ones may well serve you better at the end of the IVA when it comes to equity release time, these are things that some firms do (like Michael Peoples at McCambridge Duffy).
In 6-7 years the people that took out IVA's with 2014 protocols are going to be glowing this forum up in bright lights saying how on earth am I being forced to take a loan, I thought my IVA was to be finished after 6/7 years and all debts gone...
Posted: Fri Oct 23, 2015 11:48 am
by Metrics
Yes I can see that point of view.
As the majority of my creditors didn't vote. PRM have asked for the extension.
I think it just caught me by supprise.
Well I'm going to ring them back to accept
I'm also going to budget for Disney land in 6 years. Maybe now I can get the better rooms with the extra year. Need something to look forward to with the kids.
Posted: Fri Oct 23, 2015 11:50 am
by kallis3
Good for you! You might be able to afford one of the Sun Holidays (if they still do them) for this country which don't cost a lot.
As a point of interest - who are PRM?
Posted: Fri Oct 23, 2015 11:51 am
by Metrics
They are viewing my wage increase under the 10/50/50 rule.
I have no equity. So 1 less thing to worry about.
I am under the 2014 guidelines. But with no house I believe I'm OK?
Posted: Fri Oct 23, 2015 11:53 am
by Metrics
bought my Barclay's loan last week aparantly. Sorry its PRA Group
Posted: Fri Oct 23, 2015 12:01 pm
by longslog101
if PRA are the only ones to vote do they own more than 75% of the debt ? If the others didn't vote cant PRA's request to extend be ignored and still achieve no objection from 75% of creditors so it is back down to 5 years ?
Posted: Fri Oct 23, 2015 12:03 pm
by kallis3
Right - sorry about that. You will be ok with the total term but, as longslog says, why didn't any of the others vote? It does seem strange.
Posted: Fri Oct 23, 2015 12:10 pm
by Metrics
Tesco advised would go with majority. 51% of total debt
Natwest sold to pra 19% of debt
Barclay's sold to pra 15% debt
Moneyway - no vote 10%
Nationwide - no vote 5%