www.iva.co.uk

I was just wondering how it works with overtime and being in an IVA.

If you have the 50% rule in your IVA, does this mean anything extra you pay comes of the final figure?

We haven't entered into IVA yet just getting figures together for IP etc.

If you regulary earn overtime, commission or bonus your IVA will probably include a 50% rule.

There is no final figure in an IVA... If you can afford to you will end up repaying all of the outstanding or at least most of it!

The only time final figures come into play is if you offer a full & final settlement figure. In which case the greater the amount you have already paid into your IVA the lesser amount you will be able to offer on F&F.

But hey I'm no expert!

I thought so Jinx, was just wondering.. sometimes hubby can get quite a bit when offered. Suppose its just extra money into the pot at the end

Hi Angela
Not sure what you mean by coming off the final figure, the extra paid will increase the dividend paid out to creditors. If you have the minimum dividend clause this would help make sure it's met. In the event you earn lots and lots of extra money then it would be possible to end the IVA early by paying all the debt in full, iva fees and interest.

Don't think he'll get that much.. would be nice though!!![8D] I just didn't know how it worked with extra income, but if I'd sat and thought about it, would have realised

lol woudn't it just! I'm paying more into mine but I'll never get close to paying it all!

No unfortunately angela it doesnt mean it comes off what you pay, the creditors just get that bit more. I find the best thing to do with overtime, depending on your proposal, is I pay my 50% as I go along , I make an extra payment each month, that way I dont owe anything at review. Yes your creditors get a bit more but you get to keep the other half which I bet previously if like me just went on keeping my head above water. Now I get to save that half. Fair all round I think. That little contingency fund can grow quite quickly.

Ang

Ang

Yeah I understand that bit now, thanks Ang.

We'll have to discuss that with Melanie when she has our proposal ready. We're fine with the overtime bit I would feel better if I knew creditors were getting that little bit more, and like you say our half can be put away for those emergencies or ASDA stamps etc.

does anyone know about the rules of IVA's and "employee Benefit Trusts"

My overtime rule is 10% over my normal takehome pay and 50% of that extra. I seem to have done quite well there