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My work have recently opened up the option to enter their share save scheme. My question is this. If I do not reduce my monthly payments and manage to pull some money together to commit to this am I allowed to join the scheme? It is an invest for me that will be released in 3 years at least I will have something at the end of the scheme and not be totally penniless.

Can they say no if my payments carry on as normal? It comes straight out of my wages so they will see it on my payslips at my next review.Feels so unfair have no pension or anything.

Thanks,

Siobhain.

Your creditors will not be prepared for you to put savings into a share save scheme, unless these are being funded out of your usual monthly allowances, which then become questionable if you are able to save! You are unlikely to be penniless at the end of your IVA, as you will have the disposable income you are currently paying all to yourself, giving you then the opportunity to invest wisely.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

What would be the situation if you already were contributing to a sharesave scheme, but wanted to enter into an IVA? Would the creditors let you continue to make payments into the scheme? For example, if you were contributing £100 per month into a 5 year scheme that was maturing in 6 months time and had a current surrender value of only £6000 but if held to maturity (with just £600 further contributions) would be worth around £15000 in company shares.

Would the creditors be prepared to lose nearly £10k by preventing you from making the final 6 payments - as once you stop paying into the sharesave schemes, then you are forced to take a refund of contributions with only a small amount of interest added. Would they take a view that the £6000 is guaranteed so preferable to them, but the £15000 is based on the share price at a future date so could end up being less than expected (or more if the company does well and so the share price rises).

Hi
I doubt if they will allow a saving scheme even if they would benefit from it.It would be difficult for them to enforce the clause.
I think that you will have to accept that you will have to stop paying into it and any funds received would have to go into your IVA.

Bambi81
I can see what you are saying but the creditors view would be if you can afford to pay into the share scheme you can afford to pay that into the IVA..............and you can see their point.
Regards

Andy Davie
IVA.co.uk Spokesperson

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http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
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So long as the ongoing payments into the scheme were fully disclosed to creditors, and that they were getting the benefit of all of the shares, it makes sense for creditors to agree to the ongoing payments, so I do not necessarily agree with Andy here - and I have successfully included such arrangements in a few IVAs of my own. The original poster's circumstances are different in that they want the benefit of the shares, effectively at the creditors expense.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp