I have just 6 months of an IVA left. Never missed a payment and always declared any permanent pay rises. However I have just read the whole paperwork(stupid me) and it says I should have declared nay bonuses I get. I don't get fixed bonuses and with me being unaware of this important detail I used them for car repairs home improvements etc. What I worried about is when I finish in 6 months that this will show that I could have paid an additionally £2100 in the last year. Which I obviously haven't got. What is my best option I can no way pay the back over the next 6 months with no likely windfall in sight between now and then.
Have you been getting these bonus payments over the last year only ? If not the other years might come to light at the completion review -- so be prepared ! If just the £2100 over the last year only --- were the bonuses £2100, or is that the share due to the IVA ? Hopefully the IP can deal with this by way of extension -- a pain, I know, but better than failing the arrangement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:Have you been getting these bonus payments over the last year only ? If not the other years might come to light at the completion review -- so be prepared ! If just the £2100 over the last year only --- were the bonuses £2100, or is that the share due to the IVA ? Hopefully the IP can deal with this by way of extension -- a pain, I know, but better than failing the arrangement.
Yes I have only got them since October last year and that’s the pre tax bonus total. I am on a six year Iva due to end July. I never got them before that point. I had my annual review July last year but my p60 wouldn’t have shown these but this years will. I am so used to declaring incoming and expenditure every year I totally forgot about extra income as I haven’t had it before.
Foggy wrote:Have you been getting these bonus payments over the last year only ? If not the other years might come to light at the completion review -- so be prepared ! If just the £2100 over the last year only --- were the bonuses £2100, or is that the share due to the IVA ? Hopefully the IP can deal with this by way of extension -- a pain, I know, but better than failing the arrangement.
Yes I have only got them since October last year and that’s the pre tax bonus total. I am on a six year Iva due to end July. I never got them before that point. I had my annual review July last year but my p60 wouldn’t have shown these but this years will. I am so used to declaring incoming and expenditure every year I totally forgot about extra income as I haven’t had it before.
Well that reduces the problem somewhat. Assuming you have the normal 10% 50/50 clause for extra income: Take the nett figure ( how much actually hits your bank). From that take off an amount equal to 10% of your agreed base income (usual basic pay as agreed with your IP). Then split what is left 50 / 50 (half you keep, half due to the IVA). That will give you a figure far less than £2100 to have to pay over. Your clause might just be a straight 50/50 .... it will be in the proposal which you have.
You have to do this sum for each month you get bonus payments -- don't add it all together.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:Have you been getting these bonus payments over the last year only ? If not the other years might come to light at the completion review -- so be prepared ! If just the £2100 over the last year only --- were the bonuses £2100, or is that the share due to the IVA ? Hopefully the IP can deal with this by way of extension -- a pain, I know, but better than failing the arrangement.
Yes I have only got them since October last year and that’s the pre tax bonus total. I am on a six year Iva due to end July. I never got them before that point. I had my annual review July last year but my p60 wouldn’t have shown these but this years will. I am so used to declaring incoming and expenditure every year I totally forgot about extra income as I haven’t had it before.
Well that reduces the problem somewhat. Assuming you have the normal 10% 50/50 clause for extra income: Take the nett figure ( how much actually hits your bank). From that take off an amount equal to 10% of your agreed base income (usual basic pay as agreed with your IP). Then split what is left 50 / 50 (half you keep, half due to the IVA). That will give you a figure far less than £2100 to have to pay over. Your clause might just be a straight 50/50 .... it will be in the proposal which you have.
You have to do this sum for each month you get bonus payments -- don't add it all together.
Phewww. Checked my propsoal it states “where I receive anhoc additional income I can retain 10% and introduce 50% of the balance to the Iva” so it is 10% retain and then 50/50 so nett. So hit my bank is £1575 minus 10% = £1417.50. So then the 50/50 rule comes in. So I’m looking at a bill of around £700? Give or take.
Foggy wrote:Not quite -- you don't keep 10% of the bonus amount -- it is 10% of your normal monthly take home pay
Wow they like to make it complicate but 10% of my monthly take home is more than 10% of the bonus so that’s even better. Thank you so much for your advice. Call to the IP tomorrow hopefully they will let me pay what I owe over the last 6 months of the Iva and it can be completed without issue. Thank goodness it’s been 6 long years with light at the end of the tunnel.
Over the years if you received an ad hoc bonus of say £100 and this wasn't in the 6 months pay the asked to see, therefore they haven't seen the evidence, how would they find out?
At the end of the IVA what is usually supplied to them? I want to be prepared because I know I've lost a few pay slips here and there.
Over the years if you received an ad hoc bonus of say £100 and this wasn't in the 6 months pay the asked to see, therefore they haven't seen the evidence, how would they find out?
At the end of the IVA what is usually supplied to them? I want to be prepared because I know I've lost a few pay slips here and there.
Bonuses are taxable and should appear in your P60's -- It varies from firm to firm, but these are often asked for.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Just wanted to let you know by getting onto this back in January and dealing with it. My IVA finally ended 2 days ago and just had confirmation my final review has completed without an hitch.
Plus as it was a 6 year IVA logged onto my credit report and all defaults gone. Just that step of completion certificate and removal of judgement on the report.
Thanks for all your advice esp Foggy who advised to just come clean.
Still a journey ahead but light at the end of the tunnel.
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
Thought I would do a little update. So final review all completed as I said early August 07/08 at the end of my six years. They sent something to creditors with final amounts and a copy to me on 16/09. But thats it so far so over 3 months since end date and no completion and still on insolvency register. Credit report is clear of all defaults but that pesky judgement on there. I have called and emailed and they have advised they are working on it. I am still under the terms of this and need to move on. How long should I wait until I formally complain?
Sometimes it can take up to six months for completion. Just keep pestering them.
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
Most completions take from 2 to 3 months. Some take a couple of weeks and a few take the full 6 months built into the usual agreements (sometimes it even overruns that!). If you are with Aperture the 6 months is, basically, guaranteed !!!
I see that you have been sent the final report -- that usually accompanies the completion certificate ....... you are looking for a non-descript slip of paper merely stating that you have fulfilled your responsibilities and that the supervisor has no further interest.
Check your entry on the register -- does it say "completed" ? ..... we stay on that register for up to 3 months following the issue of the completion paperwork.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
