www.iva.co.uk

My chairmans report states that I am allowed to earn 10% over my pay amount every year, before I have to pay over 50% of my overtime. Is this normal, as all the threads I am reading are 50/50 overtime every month.[:(]

Yes - this has been newly introduced but seems a much fairer allowance on behalf of the creditors.

Thanks Melanie, That is good news!

does this mean you dont have to send of your 50% o/t until you have earned more than the 10% of your income? anyone help pls.

Petes39

The way I understand it is that if, for example your take home pay is £1,500, then provided any overtime is less than £150, you pay nothing additional. If it was £250, then you would pay 50% of the £100 that is extra to the 10% of £1,500. Hope that makes sense!

I have the same clause in my IVA debbi. As the only one to approve my IVA was HSBC/Halifax which were both TIX, I assume this is something that they do?

I am nearly two years into our I V A and am doing overtime to cover for my husband not working. Will all my overtime be counted or just 50%.

my iva was approved jan07 and i have the 50/50 clause, can i ask for the 10% clause to be added or is this only avaialbe for new iva's?

I'm not sure you can actually ask for specific modifications to be added/modified - but I aren't sure.

My IVA was approved in December 07, so before yours mb1982. I think i am very lucky to have this clause instead of the straight 50/50 as i can work alot of overtime if i want

Cr15py - So for example if my take home pay was £1550 inc o/time, i would be allowed to earn £155 in overtime, anything over that i would have to pay 50% over. Is that right - ?

your lucky then debbiw as my new pay scheme i have also has a 10% monthly bonus based on performance, its nice being able to keep half but would have been even nicer to keep it all. i will ask the question though with clearstart

debbiw wrote:

Cr15py - So for example if my take home pay was £1550 inc o/time, i would be allowed to earn £155 in overtime, anything over that i would have to pay 50% over. Is that right - ?

That's the way I understand it debbi - it's how it was explained to me by my IP.

So, if you earned £255 in overtime, you would have to pay over an additional £50.

My husband was earning £400 a month, but has not worked for the last 12 months. Some months I can earn £500 overtime, sometimes only £150.This ensures we still pay the full amount due each month. If my overtime is too much, will we have to increase our payments. None of my overtime is guarranteed. We are due our 2nd annual review in March and I am not sure I could maintain this level of overtime if they increase our payments.[|)][|)]

This is a newly created provision and only relates to IVAs which either contain it within the body of the proposal or where it has been modified in. It does mean that the first 10% of additional earnings are disregarded for the purposes of 50% uplift calulation.

Debbie - if you are earning overtime to supplement your husband's loss of earnings, this is not going to be taken into account for the purposes of uplift - and well done to you for earning those extra monies to ensure that your creditors get paid.

Blimey! Even now we seem to be getting 3 different mods on this subject alone: A cursory review of modifications in my in tray:

Tix first 10% increase in take home pay is free. Therefter 50% of the excess to be paid into the pot.

KPMG - Straight 50% increase in income

GT - 50% of net increase in surplus

Strict interpretation of those 3 suggests to me that notwithstanding the apparent 10% leeway in the TIX modification the one that's best for the debtor is the GT one - the others don't seem to take account of expenditure increases. Also, I note that in the latest set of TIX mods the discretion to reduce payments by up to 15% would appear to have disappeared! How odd.

Think the sooner everyone doing protocol-compliant proposals the better! Until then it seems that the terms will simply depend on who the creditors are.

Ian