Windfall or Bonus -that is the question?

[luluj]

My IVA started in September 2007. I should have received my annual pay rise and bonus in July 2007 (before my IVA was ever thought off) - however I have only just received it in November pay! This has caused me to have a £790 bonus and £340 back dated pay rise - having spoken to my IP and sent in copies of my pay statement with a letter requesting / begging retainment of all to help support the additional moving costs we had,providing them with receipts for the costs etc - I have been told that the bonuns is classified as a WINDFALL and that all of this will need to be passed over to them" My payslip clearly says BONUS - they say it is because it was due prior to the IVA set up that it now falls into the WINDFALL clause - had it have been dated for after September then it would have been a BONUS and I would have got to retain 50% of it! So my thoughts of having a better xmas with my 50% of my bonus seem to have been shattered! Is this correct or should I continue to fight for it! I have insisted that they put it in writing exactly how much I owe them - this was four days ago and I am still waiting...what should I do ? Pay or fight?

Lulu

[Adam Davies]

Hi
That does seem a little unfair,it is clearly marked as a bonus and I think that someone is being a bit of a jobs worth.I guess that you are not dealing direct with your IP but a case worker.If this is the case ask to speak direct with your IP
You could just send 50% of the bonus,you are keeping to the terms of your IVA,and continue paying the IVA on time.
I would doubt that your IP will chase you too hard for the remainder.
Be sure to keep your IVA upto date as you will probably find your IP less than helpful in the future if you take this route.
My personal advice is to double check your chairmans report and if it states that you are entitled to 50% of your bonus then I would just send that and keep the rest
Good luck

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[hallway]

My Iva states any windfall over £500 has to be paid so i presume I can keep anything less than this I thought all were the same.

[Adam Davies]

Hi
IVAs vary from one to another.
You would think that overtime,windfalls and bonus's would all be universal accross the board.
One thing that I have learned is that nothing regarding insolvency is set in stone.It will vary from one proposal to another,one IP to another and from one OR to another
Madness

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[aguise]

Hi Lulu
only my opinion but if it says bonus then that is what it is. If you had got it at the right time they would have had none of it, so surely 50% is the only fair way to deal with it. If your proposal says 50% of bonuses then that is what it should be. If you get to keep the first £500 of windfalls, then this also amounts to the same more or less. I would speak to them again, tell them you are quite happy to give the 50% as it states in your proposal.
All the best.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[MelanieGiles]

Technically the IP here is correct, however if this was my case I would definately agree to a 50% uplift only on grounds of fair play. Andy's suggestion to just send 50% and carry on making the payments is a good one, but if you do get pursued for the balance then it may have to be paid over. My gut feeling is that if you speak to the IP you will be able to agree this directly - and do read the proposal documents carefully for the windfall and uplift provisions.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Martin2011]

It would certainly be simpler if there was some common standard around %'s for bonuses, overtime, windfalls and pay rises etc.... I've found it confusing and over the past 22 months the issue has arrisen several times. I've taken a pragmatic view and simply compare actual income for every month, including any additional monies from the above list, with the amount stated as income in my agreement, and then send 50% of the difference direct to my IP. No complaints so far and it has resulted in payments into the IVA now standing at 3.7k over what was agreed to date. I think Andy's advice to speak to you IP is always the best course of action if things aren't clear...

Good luck and seasonal best wishes...

Martin

[Skipper]

Generally,the only consistent rule I think from all the post on this subject is - anything that is more than 3% and not an inflationary pay rise then one is at likely of losing all if not giving away 50%.



"Always think outside the box"