hi,my partner and i have decided after discussing options with various companies that we will go down the route of an IVA.However reading these forums we are a little confused...what is the 50% that is mentioned? thanks
Hey Laura, welcome to the forum. If you earn over 10% of your salary through overtime etc then you will have to split it 50/50 between yourself and your creditors. I think it's fairly standard in IVAs. X
Every IVA company i spoke to all had the 50% clause. Seen as creditors are aware of it and know it will give them a better return surley they wouldnt approve an IVA without it.
Isn't that just for the old IVAs though creditcrunched? Laura isn't in an IVA yet so won't she get the 50% bit with it being a new one? Maybe the technical experts can clarify that as I'm not sure.
Last edited by Viki.W on Tue Sep 02, 2008 4:20 pm, edited 1 time in total.
hi it all depends on your creditors i have been in one for 8 months and i get to keep all my bonuses and overtime if they are happy with the dividend you are paying and they dont add this to your iva clauses then you wont have to pay it
Mine is in my IVA and I don't actually get to work overtime. I think the majority of new ones have it in.
Ihtought they did it so that you could pay a little more back to your creditors, regardless of your original dividend.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
to be quite frank i think ip`s add this nowadays to have a better chance off success if it wasnt added at the start of the proposal and they are accepted i would think more iva`s would be succefully completed just my opinion as creditors are rejecting so many now.
Mine was a modification from the creditors. It wasn't in my original proposal.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Yes. I had no problem with it because I very rarely work overtime, and if I work Bank Holdays, I can do them for time off.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
When my proposals were submitted it never included the 50% clause, there was only one modification which was to do with my company pension so any overtime monies I earn are mine.
I have had this confirmed by my I.P. on numerous occasions...just in case
we have just found from my ip that our 50% isnt 50% as long as they are happy with the dividends we are paying which is worked out by us sending 3 payslips for the year with our expediture sheet they work out our contributions for that year as they take avrge earnings so its realy not worth doing any overtime if poss.
