SECOND JOB

[Poland33]

I am thinking about getting a 2nd job part time. How will that affect my IVA?

Also if someone if someone loses their job in the 4th year of the IVA would the practioner still apply for bankruptcy even with all the payments made up to that time?

[Cybus]

If you are subject to an annual income and expenditure review, and very few aren't, you strictly speaking should declare your part time earnings as part of your review.
As you are already in an IVA then your I & E in the proposal will only reflect the income from the your full time employment.
I suspect that if you are subject to the normal terms associated with additional income, then you are going to be expected to pay 50% of your earnings (After deduction of Tax and NIC) from your part time employment to the Supervisor for the benfefit of creditors.

As for your last question ...

The Supervisor does have a duty of care to both the creditors and yourself.

You should advise them as soon as possible in the event of a change in circumstances. In the event of losing your job in the 4th year, I would suggest that creditors are asked to consider an extension to the term of the arrangement of say 6 months.

That would effectively give you a 6 month window in which to find new employment and on finding such, advise the Supervisor of your new income and determine if it would be appropriate to then seek a further variation to the propsals offering contributions at a lower rate if the income is lower or at a higher rate if the income is higher.

I would be surprised if creditors would not accept an extension to the term of the arrangement to give someone the opportunity to find new employment.

Unless there are mitigating circumstances, I would not expect them to allow a debtor to walk away part way through year 4 and accept what had been paid in full and final settlement of the arrangement.

At the end of the day it's going to be down to the individual debtor concerned and how they want to go about it. But ultimately it's the creditors who will have the final say.


Tell it like it is.

[Adam Davies]

Hi
Check with your IP as some second jobs may be viewed as extra income and subject to 100% uplift rather than the normal 50% for overtime/bonus's
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