www.iva.co.uk

HI All,

There are various posts surrounding bonuses etc but most people talk about their bonus in terms of monthly pay.

My girlfriends IVA states the following:

"Where at any time during the arrangement, I receive any overtime, bonus or commission payment from my employer which was not included in the original surplus income calculation, and if this sum exceeds 10% of my normal take home pay then I shall disclose the receipt of such monies to my Supervisor within 14 days of receipt and pay 50% of the amount over and above the 10% to my Supervisor...."

She has just been given a bonus in February's pay cheque which is 8% of her annual gross salary. The text above is slightly ambiguous, does "normal take home pay" refer to her monthly net salary or her yearly net salary?

I hope it refers to her yearly amount, if so, it would obviously be less than 10%, if it refers to her monthly net monies then she will need to pay some back.

Any clarification????

Thaks

Ben

Hi and welcome.

This is something that you will have to take up with your IP. It is a bit ambiguous, I agree, so you need to clarify it.

Hi Ben, don't want to be a party pooper, but I really think this will be on the monthly salary.

As Jan has said, the best way is to contact your IP but the wording is very similar to our proposal and we do it on a monthly basis. Best of luck.

Hi All,

Yeah I am in agreement after reading the contract again, all the references to income are quoted as her monthly net amount.

We are moving so we have move costs and indeed higher rental and she has taken a new job paying more so should be able to off-set the bonus against the cost of moving. The higher cost of living and rent of living in London swallows up her increase in salary so all in all she doesn't have any more disposable income to give back to the creditors.

Thanks for sharing your views.