Bonus - 10% rule

[DebbieS]

Morning all,

I hope someone can help me with a query I have about a bonus I am about to receive.

I am due to receive £300 net, and from the posts I had read on here, assumed that I would keep 10% of my net pay (£98), and the remaining amount would be split 50/50 with my IP, so they would get £101.

However when I called my IP (Grant Thornton, previously Wilson Philips) to ask whether this was the case, they kindly looked into this for me, and advised that as my 'Chairmans Report'(?)had no such clause in, I will have to pay them a straight 50% of my bonus - £150.

I am disappointed with this, and although it is only £49, with Christmas coming every penny counts! (And if this IVA has taught me anything, it's the value of money!). However I suppose I should be grateful that they didn't take 100%.

Has anyone else had a similar issue with regards to this? And is there anything I can do about this, or do I just pay the 50% and leave it at that?

This is the only bonus I have had, and will have during the course of my IVA, so the only information I've had on is through this site. Your help would be appreciated.

Many thanks in advance,

Debs

[kallis3]

Check your proposal and/or chairmans report and see what it says.

If it does say a straight 50/50 split, then I am afraid that is what you will have to pay across.

Bit of a bummer, but unless you have the 10% clause you will have to pay I'm afraid.

[jtomo64]

My proposal does not include any overtime or bonus clause which concerns me. No 10% rule or 50% rule is even mentioned. I spoke to my IP about this and was told that the 10% and 50% rule would apply.

Although I would be happy with this arrangement, why is it not mentioned in my proposal? Surely it should be?

My creitors metting is to be held on 6th November 09, I am sure they will pick up on this and insist on amendments.

[kallis3]

I would clarify this with you IP.

It wasn't in my proposal, but was included in my chairmans report. I had no problem as I never work overtime!

You do need to sort this out though.

[DebbieS]

Many thanks for getting back to me.

From what I understood when I spoke to Grant Thornton, there isn't any sort of clause in my Chairmans Report about bonus payments, so she said this would mean a straight 50/50 split.

I should have this put away with my other IVA correspondance, so I'll see if I can dig it out.

Debs

[jtomo64]

Thanks to all for your replies.

Debs, if it does not state a split in your proposal or chairmans report then surely you can not be held to account on word of mouth, ie from the IP. It must have to be written down somewhere for it to be legal and enforcable.

It is certainly not included in the proposal.
When does the charmans report become into being? Is it after the creditors meeting? (Set for the 6th November)

I will call my IP again on Monday as it is a concern that I need to clarify for peace of mind.
I do occasionally work overtime and need to know where I stand with payments.

J.

[back on track]

then surely if the overtime claus is not in the proposal or the chairmans report as modification then it cannot be enforced.
you cannot add anything to proposal after the meeting and you getting your chairmans report that is not done through the courts surley.
otherwise nobody would know where they stand ips included.
what are the thoughts of the ips

[MelanieGiles]

Unless there is provision for increased payments within the IVA proposal, the IP cannot simply make up their own rules. For anyone worried about this, get your IP to send you the absolute authority upon which he/she is relying in demanding this additional money from you.

[DebbieS]

Hello again,

I have had a look at my copy of the Chairman's Report - this comprises of a single sheet of paper, advising of the arrangement I have made with one modification - which is that my arrangement will fail if I don't keep up with the repayments.

I'll be honest that I had no idea that I had to hand over any of my bonus payment until I cam on this site. It's understandable if I do have to - after all I'm paying back less than I borrowed. However had it not been for this site I'd have carried on regardless, and not handed any payment over, until my annual review next year.

Melanie - Please can you advise under what catergory in my proposal I could find such a clause about splitting a bonus - I had a quick scan through it, but all the small print isn't in what I would call plain English. A point in the right direction would be appreciated.

Many thanks,

Debs

[Pennyless]

Debbie if its as well written and clear as mine you may find it under a paragraph marked "Income And Expenditure".

[MelanieGiles]

Debbie - I cannot advise without sight of your IVA proposal - but if you would like me to have a look at this for you please scan and e-mail it to me.

[DebbieS]

Melanie - Many thanks for offering to look at this for me.

I think I have found a relative who owns a scanner, so once this has been done, I'll email it through to you.

[DebbieS]

Have my proposal ready to go - but no email address!

Does anyone have Melanie's email address please?

Thanks,

Debs

[Skippy]

Melanie can't post her email address on here, but you should be able to contact her through her website.

[MelanieGiles]

I am not sure the website can deal with attachments. Could Andy please send Debbie my e-mail adddress?