Unusual Situation

[dobbin]

Hi,

I had my IVA agreed at 46p in the £ around seven months ago and all has been going OK.

I have however managed to negotiate a substantial payrise and bonus at work this year which by my calculations would mean that I would now be able to repay 100p in the £ and all relevant IP fees, etc.

Even doing this would seemingly allow me a small increase in net pay after my IVA payment when spread over the remaining 53 months.

I suppose my question is whether my recalculated monthly payments would increase to take all available money according to my income and expenditure or whether as above it would allow me to actually benefit from this pay increase?

Thanks in advance.

[aguise]

Hi dobbin
What does your proposal state about payrises. Does it include all of payrises or as mine states 50%.

Ang

[dobbin]

Hi Ang,

To be honest it doesn't say anything other than the in excess of £500 windfall clause going to creditors.

I have no problem paying back the full amount including fees and statutory interest, which I should now be in a position to do. However even if I do this, from my I&E calculations including the increased payment to cover this would currently give me additional net income so I actually get some benefit from the payrise.

Assuming I have to pay the full amount and not 50% should my monthyl payment increase above and beyond what is needed to fully cover the full repayment of my dept including fees and statutory interest.

Similarly to this, if I was to receive further bonuses and payrises, would these also need to be paid in full with the above assumptions?

Thanks again

[aguise]

Melanie and Ian will be best to advise on how it would be done but if you paid the full amount back, your iva should finish early, so even though you may not feel the benefit initially your iva should finish as soon as the debt, plus Ip fees and possibly interest is repaid.
Not positive though so please wait for the technical expert answers.

Ang

[dobbin]

Thanks Ang, that's what I thought too.

Either way is a good proposition ultimately, but knowing would allow me to plan accordingly

[aguise]

The best person to ask is your Ip they will be able to give you a definative answer, as you say either is good, lucky you and well done.

Ang

[MelanieGiles]

It really does depend upon the terms of your proposal - and if there is no reference to increased income either in the proposal or the Chairman's report (which I would find unusual) then this will be dealt with at the discretion of yoru supervisor.

My opinion is that you should pay over what you can afford to pay, but this comment always makes me unpopular on this site from those who are in the 50% only camp! I believe that if you borrow the money you should pay it back to the best of your ability.

[aguise]

Never unpopular Melanie I totally agree, 50% of my rise will never amount to anything. My 50% amounted to about £3.00 a week. NHS low band doesnt cover the rise in my bus fares.
lol.

Ang

[dobbin]

Thanks Melanie and Ang,

Melanie, I agree with you and don't have a problem with 'overpaying'. To be perfectly honest it makes sense for me that my creditors will want to get as much money as possible as soon as possible from a risk reducement point of view.

I will obviously contact my IP as soon as I know exactly what my new income and bonus amount is.

The fact that I will be in a postion to finish my IVA payments sooner (although still a long time away) is a great relief.