Hi Nick. Yes, I see what you are getting at, but don't agree with the reasoning
If you sold an asset of the IVA (like your house or the Rembrant in the lounge) the monies raised would be due to the IVA, even though you bought the asset with money that you'd earned.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3
Actually, I think PPI is classed as an asset, not a windfall but I do stand to be corrected on that.
Hi Kallis3,
Yes that was one of my original points of discussion why is it classed as an asset..
For it to be an asset then it must have been yours in the first place, a bit like savings, in the same way as a lump sum backpay is yours and as a lump sum is just like having a chunk of financial savings, and it is also over and above what you had anticipated and allowed for within your budget..
But with one you have to give over 100% and the other only 50%..
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy
Hi Nick. Yes, I see what you are getting at, but don't agree with the reasoning
If you sold an asset of the IVA (like your house or the Rembrant in the lounge) the monies raised would be due to the IVA, even though you bought the asset with money that you'd earned.
Hi Foggy,
I understand where your coming from and I guess its a bit more on my side just not understanding why one is an asset and one not, the only reason it has been discussed is due to a PPI reclaim, which I readily gave 100% of into my IVA to get the original balance down, which was actually more than the amount owed to the creditor, this got me thinking about the whole thing..
With reference to the Rembrant, it was probably buying it which made me enter the iva , what would happen if it was stolen and you got an insurance payout. On the basis of it being an asset, like a PPI reclaim, it would have to be paid over 100%, but an insurance for stolen goods is meant to be used to replace the goods so where would you stand...
I thought you were actively encouraged to save whilst in an IVA, to use for paying annual bills etc. qand as long as its from your allowances or your 50% of overtime it is not a problem
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by nepensioner
I thought you were actively encouraged to save whilst in an IVA, to use for paying annual bills etc. qand as long as its from your allowances or your 50% of overtime it is not a problem
Interesting point, we were told that any surplus money must be paid over to the IP and that if we had the ability to save cash then this should be classed as surplus income and shown accordingly in the annual budget sheet, which would push up the monthly payments.. I was also told, by a bank, that they did not offer savings account to people in an IVA for the reason that they should not have any money spare to save...
Hmmm -- yes, saving is encouraged. Obviously there are things in your budget you have to save for --- car tax, your coontingency fund, repairs etc. If you can make economies in your budget to put a little aside for a rainy day it should be yours to keep. At my annual review I wasn't asked about savings at all.
I am guessing that the bank you are referring to is the Co-Op ... it has long been suspected that was their reason for refusing savings accounts, but is purely their take on things.
Which firm are you with Nick ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
blimey, I'm glad i'm not with your IP Nick, if we didn't manage to save something each month from our allowable expenses, we would have had to have missed a few payments by now to pay for the £560 worth of car repairs over the last year we have only been allowed £22 a month for, also the unexpected £178 electric bill that was underpaid that they wanted straight away, so it's swings and roundabouts really.
As for the PPI thing, I guess the way i see it is that it's not earned income as such, we purchased a product, an insurance product with our 'earned income', just like you might have purchased other goods, the fact that this product has turned out to be missold so you can reclaim the money makes this an asset that you now hold which should be forfeited into the IVA in full, just like if you bought a second home with your 'earned income' this would be an asset that would probably have to be sold and forfeited in full into the IVA (as it wouldn't e your main home), backdated pay/bonuses etc are not assets in this way and this is why they come under the 50/50 rule
I think that nickjohn does make some very good points - and at the end of the day there is no definitive answer to whether this money ought to be treated as a windfall - and thus the full amount paid over to the IVA, or whether it is remuneration based and thus falls under the uplift provisions.
My policy is always to try and favour the debtor as much as I can within the remit of the IVA contract and my duties to see fair play to both sides. Therefore by interpreting the additional money as remuneration based, the debtor gets to receive some of it and creditors get the balance. The same argument would not work for any other asset.
It is slightly perplexing that nickjohn is under the misconception that savings are a no no in an IVA. I can only assume that someone at his provider has unintentionally given him the wrong impression. I would advise him to clarify that issue with his provider, it would be a sad day indeed if an IP firm imposed that sort of rule upon it clients.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
When i am giving advice to clients i try to encourage a small amount of savings each month so that when the unexpected does come up there are some funds to cover it.
Previously unexpected expenditure may have gone on a credit card or into the overdraft, when these lines of credit are no longer available a small amount of saving is a sensible approach.
Some of my clients save a small amount every month in a credit union for example.
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
I appreciate all the feedback on the issue of saving and I will approach my IP about it...
At my initial meetings it was one of the points I raised and was clearly told that if you are in a position whereby you are not spending the amounts detailed within your budget plan then your budget plan must be wrong and that any spare income must be paid into the IVA...
Wonder how it would work if you had, say, the nice back pay as per the original line of this thread and saved this along with amounts each year and then tried to make a FF with the money, again my understanding is that you cannot use your own money to make an FF as you are not supposed to have such sums at your disposal..
May I say again many thanks for all those who have taken the time to respond to my inane rants, unfortunately there will probably be more over the term of of my IVA )
I would imagine nickjohn that many people who earn bonuses/extra hrs/overtime etc whereby they only need to pay in 50% of that into their IVA, can save the rest if they choose to and potentially offer this as a F&F at some point.
I have to say, and this is me being slightly dubious, I have read (and not only on here I might add) of many people who seem very fortunate to have very kind friends/family members and even one I read only yesterday, their boss, who is willing to lend thousands to offer as a F&F, I'm not saying this is untrue, as for many people they are, just I find it hard to believe in all these cases and I am sure some of these people have managed to save these sums themselves. I know that may be a controversial opnion, but I cannot for the life of me see how anyone's employer would offer an employee a few thousand to pay off an IVA, I can't see it myself....
Last edited by lem on Thu Apr 19, 2012 1:17 pm, edited 1 time in total.
As lem says, your share of overtime/bonus etc is yours to do with as you wish. If you want to save up for a full and final then you can do so.
Sharing from experiences of dealing with debt
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