www.iva.co.uk

I've had an IVA through Payplan for six months and my circumstances may soon change for the better (A salary increase circa 5k through a new job). Is it in all IVA's that the IP can ask for 50% of this increase? As I am happy to pay the 740 a month I am paying at the moment which is for a 65k debt reduced to 44k with Payplan ( although it was 52p in the pound which means they are making 10k out of it, is that right?) My life hasn't been exactly a barrel of laughs and I have yet to get a pension and would ideally use the money to obtain a mortgage on a property to reduce the expensive rent I pay as I live and work in London.

Any advice would be appreciated.

I have an IVA and in my mods it states 50% of any nett increase inc. overtime and bonuses must go to creditors.

Hi
All of your payrise,normally,will have to be paid into your IVA,less any increased expenditure.
Even if you managed to buy a property and reduce your living costs it will increase your disposible income and hence payments into your IVA.
Your creditors are writing off a large part of your debt and have stopped all interest,therefore you must accept that it is only right that you pay as much as you can into your IVA and put your pension plans on hold
Regards

Andy Davie
IVA.co.uk Spokesperson

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

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Hi Lawrence,

I would contact your I.P when your circumstances have definitley changed. Usually the 50% rule only applies to overtime/bonuses/commission, however have a look at your terms and conditions. Your I.P may send you out an income and expenditure form which if any expenses have increased may offset some of your payrise.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

Hello
Lawrence.S

First is your salary P.A.Y.E or Self Employed?

If P.A.Y.E then you will be on a fixed amount every month, this will include sick pay and holidays, but if you are self employed you will have to take into account your bank holidays, holidays and Christmas period. because you will not get paid.

For your Pension i would find a different way and would advise against this action and for a cheaper house it would not help in anyway.

Regards.

Neil

Hi
I have just had my IVA approved with Payplan. I have to pay 50% of overtime/bonus/commission into the IVA.

When I got the call from my IP from Payplan I asked him about payrises and he said if I got a payrise then it would be looked at, at the yearly review whereupon they would increase the payments if necessary based on my new I & E.

I would call Payplan just to confirm but from my understanding if I was lucky enough to get a high payrise they would not increase my payments until review time.

Sharon X

I received a payrise a few months back and nearly all of it went into a revised monthly payment (fair enough as I had no significant expenditure increases). For those of you who are allowed to keep their payrise 100% until annual review time - I am jealous!!!!! But make sure you are not in line for a backdated bill from your I.P. / IVA Company once your increased salary is reviewed. Better to be safe than sorry. From reading the forum it does seem to vary a lot depending on who you are with. No wrong or right way I guess but - for me - if my payments are going up then I want to make sure that I am paying what I should be paying straight away.

When I was in my IVA I was told that if I received a pay rise I would have to pay 50% into my IVA until the annual review and then it would be looked at again.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

My view is that it shouls be standard in all IVA's that any increase you get in pay only 50% should go to the creditors and not all of it.

The reason i say this is that i am salary paid, for 37 hours a week, i dont get bonuses or overtime, but becuase of the nature of the job i end up working on average 55 hours a week. Therfore to me any pay rise i get is reflection on how i am doing my job including the extra hours, so i am pushing myself to do better at my job, but what is the point if i see no benefit.

I still understand that in an IVA you have to pay back as much possible but surley this way is a win win for us in the IVA and the creditors, as the creditors will still get more pence to the pound than was originally agreed when they accpetd the IVA

no matter how bad money gets, theirs stll alot more important things in life

It seems I am one of the lucky ones mine states 50% of all increases in basic income so it covers payrise also. I think 50/50 is fair as so much rises each year my rise doesnt cover my rent rise alone.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

I'm due my payrise in February, so I will be very interested what my IVA states with regards to payrises. I know last year I ended up with an extra £75 per month gross, which is £50 per month net, but my rent goes up £25 per month in April, so I don't really gain that much!

The exact position should be spelled out in our individual agreements, and if there's any doubt it's probably best to contact your own IP for clarification. To date I've just consistently paid in 50% of any extra monies earned, whether payrises, overtime etc and then had full I&E reviewed annually. Seems to have worked in everyones interests, though I'd agree with Optimist that I wouldn't want to get to areview and be asked for back amounts to cover payrises received earlier in the year, so best to find out the position straight away.

Martin