will I be able to keep pay rise to cover new costs

[mick.m]

Hi, I have just recently (last month) had my IVA accepted. I have agreed to pay £260 p/m which equates to 0.36p per £. The problem is, my boss has just given me a new job role and pay rise to match. My salary has risen by £5K per annum (£290pm after tax). I know this is a big increase, but my new job involves me travelling every day all over the UK. I will be expected to pay for all the petrol costs involved in travelling, increase of car insurance (for business use), wear and tear of my vehicle and any other expenses incurred i.e. accomadation etc.

My boass said that this is basically what the increase is for, to cover the costs. What I need to know is will my IP expect me to pay any extra into my IVA? In a letter from my IP they stated that I would be liable to pay 50% of any additional income to that stated in my agreement?? If thats the case then I wont be able to do my new job??
Any help would be appeciated......Thanks

[Oliver]

Contact your IP about this as soon as you can but my feeling is that your monthly payment will not increase if you can show that your costs offset any pay increase.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[mick.m]

Thanks for that, I'm just looking for re-assurance really.
Do you think that a letter from my employer stating what the rise will cover would help?? Also, do you think that I should start to save my petrol receipts incase my IP requests them??

Thanks again for your help....

[ivoriva]

I dont really know - but anything that differs from the original proposal may have to be justified, or shown, to be the case. So it maybe a good idea to keep receipts at least as an example initially. I wouldnt think you have to keep them on a permanent basis, but you should ask your IP what they require. Do you have a new contract that highlights these responsibilites that you could show to the IP?

[mick.m]

I haven't had a new contract yet....HR isn't the most efficient department in my company!! [:)]

I will be able to get a letter detailing my new role and responsibilites though, for the time being at least. This will highlight what I will need to pay for. Just hope that this will be enough for my IP.

Thanks for your advise....

[MelanieGiles]

Hi mick

There is no way your IP will take the full additional money from you if this is being used to fund your running costs. If the increase has been given to you on this basis, it is not really a pay rise is it?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk