New job = doubles old jobs salary

[Emily]

Your P60 also tells creditors your earnings, try having a review without sending in one? Such payrise as given to the poster will mean backdating what he 'owns' if creditors are not now told....I'll bet on it!

Better to inform the IP now and hand over the extra than make a big 'lumpsum' payment in arrear. The 30k is all payable as the debtor can do 100p to the pound and still stay within the I/E.....I don't see how someone could be paying less in the IVA in this instant. The whole idea of the reviews is to ensure debtors are paying maximum.

Not having a pay rise is probably the best thing when in an IVA....unless it is a bonus

[benwar]

I disagree your IP will not take all of your pay rise as that would take away all your incentives etc. Surely a bonus would be treated exactly the same as a pay rise, so they would take the same proportion?

[MelanieGiles]

Your IP will not be happy if they find out that you have attempted to withold information from them. The relationship between IP and client ought to be one of trust, and in my experience there can be some give and take to ensure a sensible eventual return to creditors.

[Adam Davies]

Hi
A payrise is seen differently to a bonus or overtime,in nearly all cases.All of the increase will have to be paid into your IVA,unlike the 50% rule for the bonus/overtime element,less any increase in expenditure.
Regards

[Piston Broke]

i have not yet had my iva approved, but my wife is looking at increasing her hours to increase the maount she earns. will this just be swalloed up totally in increased payments? we wuld have to pay extra childcare too, but i dont see the point if we are not better off. I believe we would be better off having my wife bring up our children rather than send them to additional childcare if there is no financial incentive.

hope this makes sense? any advice would be helpful as she hasnt agreed extra hours yet and we havent completed the iva

Help

[MelanieGiles]

Your incomes will be calculated at the time your proposals are presented and will be based on your actual earnings at that time which will drive the level of contributions. Additional childcare cost will of course be taken into consideration.

[Piston Broke]

sorry, didnt explain that the salary increase wont come into effect until around 5 months after the iva is agreed as it ties in with the new year at my wifes employer.

[MelanieGiles]

Well in that case I think that your wife ought to be able to keep her salary increase, and that the only effect on you ought to be a reallocation of expenditure based upon the new earning ratio - but your IP may have different ideas.

[Piston Broke]

sorry if i am being dim - will my wifes increase in salary be taken as an increase of equal amount towards our monthly payment? will we be any better off if she takes extra hours and if so, will it get taken when the first annual review is done?

[MelanieGiles]

If I were acting for you I would compare the new income ratios and reassess your sharing of the joint expenditure on the new ratios. This is a question that you really need to be asking your IP, as they may have specific views as to how this would be treated.

[Piston Broke]

Well guess what? Philip Gill are going to be my IP, so i guess your suggestion came to fruition!

i suppose its something i will get to discuss shortly after all