www.iva.co.uk

Hi All
I wonder if you can help me. I entered into an IVA in June 2007 and have been paying £308 a month. At the time of the proposal we did not have any overtime so no clause for paying 50% of overtime was in place on the IVA. However since then there has been lots of overtime on offer and I have been doing it. How will this affect my payment when my annual review comes up?? I am quite happy to pay more but what I am worried about is that they increase my payments beacuse of overtime done in the last year then the overtime stops and I cant afford my IVA payments anymore. When it comes to the review will it be case of seeing how much overtime I average each month then taking this total and my new I & E into account and if there is anything outstanding this is my increased payment?? Is this the way it works??

Hi Adam

One solution is to make extra payments due to overtime so when the overtime is stopped you will still be making your normal payment

I.E. Monthly Payment = £400
Overtime = £150

With that i would suggest making an extra payment of £100 and when you do your next I/E DO NOT include Overtime but insert a note that any overtime will result in extra payments

I should think that the 50% rule will continue to be applied if the overtime is not guaranteed. This way there will still be an incentive for you to work extra hours which will in turn benefit your creditors.

Hi Thomas Charles
I do not have the 50% rule in my IVA. So how does this affect me?? What I am trying to avoid is being told that I have a huge increase in payments and no overtime to cover it.

As far as im aware if you havnt got the 50% Mod in your IVA mods then you can keep 100% of your overtime, shift ect as it wasnt part of the agreement.
I also dont have the 50% Mod and my IP told me as its over time its all mine as he is only interested in my basic salary as it doesnt change.

A huge bulk of my monthly wage is made up of over time ect as i work 12 hour shifts and I sent my wage slips off to my IP and he didnt say he wanted more £.

The absence of a specific provision does make things somewhat tricky. There are 3 possible scenarios that could arise:

1. Your IP shares Chris's view that he has no right at all to the money. My personal view is that Chris is fortunate!

2. The overtime gets caught up in the annual review process in which case logic tells me you would keep half of the net increase in your disposable income (or whatever your review clause says).

3. If your Supervisor is a hard-liner you might get the argument that it's a windfall, being something that wasn't envisaged at the time of the proposal. That would be very harsh but technically feasible.

I always get concerned when proposals are silent on stuff like this. I would suggest you speak with your Supervisor to ascertain his/her view on it to be on the safe side.

Ian

I am in a similar situation as people above my overtime is not guaranteed and there is no provision in my IVA for it, the only clause is my Income and Expenditure will be reviewed annually. Also, another twist is I am not guaranteed a weekly basic wage. Although I am PAYE if I am unable to work because of adverse weather conditions(ie. heavy rain, snow etc), illness,I do not receive any wages. Therefore overtime subsidies my basic wage. At my last review my IP increased my payments by £57.00 which was half of my surplus income, I do not know how he calculated my Income but I was happy with the outcome. Anyone else have similar circumstances?

You are correct, if you do not have the 50% mod then you keep 100% of your overtime. However, at the next financial review your income would have increased being your basic plus overtime and your supervisor may assess your income going forward based on your basic plus overtime. So at the next review, if this overtime is not regular you need to mention this to your Supervisor when you send your payslips etc.