Bonuses

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boblardo
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by boblardo » Sun May 20, 2018 9:55 am
I have been fortunate enough to receive promotions, bonuses and PPI refunds throughout my IVA and have read the various posts on this forum regarding bonuses but have a specific scenario that I wanted to get some clarity on

My IVA is due to finish in November 2017 but I have significant bonus due to me circa £45,000. Under the rules of the IVA I would expect to pay 50% over to the IVA

First question, as this is being paid through the payroll as a bonus I assume its classed as a bonus and not a windfall?

This bonus is due around september, at this point there will be £72000 due inclusive of fees and I will have paid £62000 into the IVA meaning around £10000 remains to be paid.

there will also be 3 payments left of around £650 pm (£1950)

Under the 10/50/50 rule £22500 will be due to the IVA but this takes it over the remaining money owed

2nd question, will i need to pay over the entire 50% due to the IVA if it takes it over the amount owed + fees?
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Foggy
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by Foggy » Sun May 20, 2018 10:17 am
As well as fees, there will probably be statutory interest (8% simple per annum) to be paid until payments stop. Should you hit the sum of original debt, fees and statutory interest payments into the IVA will stop.
boblardo
Posts: 9
by boblardo » Fri Jun 22, 2018 12:23 pm
Sorry to bump an old post but its all part of the same question

My wife and I both have an IVA which interlocks.

Total Debt Owed £56299.28

Payments & PPI to date = £55503.35

I am due a bonus this month that will see another £3436.31 (inc regular payment) into the IVA making the total paid £58939.66

Ive calculated fees at around £15674.30 (based on the paperwork ie PPI firm fees etc)

I have looked through all my paperwork and find no mention of statutory interest so unless told otherwise i am assuming this needs to be paid and have calculated this is £27023.65

So by my calculation to "complete" the IVA a payment of £42698.95 would be due from any windfall or large bonus I may receive. (which is likely to happen in August)

Do I assume that anything over that figure is mine to keep? What would happen to any unclaimed PPI that is realised afterwards?

My IVA is due to end in November could I make a F&F offer of payments to date and would it be accepted? Is there much point if i am likely to receive a significant bonus is august that could pay the IVA?

Hope that makes sense
boblardo
Posts: 9
by boblardo » Fri Jun 22, 2018 12:26 pm
To be honest how do Interlocking IVA's work in this respect

We have 2 joint debts totaling £52692.70, i assume they are not split 50/50 although we would only pay £52692.70 in total?
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Foggy
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by Foggy » Fri Jun 22, 2018 1:21 pm
Interlocking IVA's basically lump the finances together to be treated as one sum, so your initial calculations are broadly on the right lines. Anything over the full debt, fees and interest (less payments to date) will be yours.

Regarding PPI -- remember that only about 2/3 rds of the refunds will hit the IVA account (claims fees come out first).
boblardo
Posts: 9
by boblardo » Wed Jul 04, 2018 10:35 am
Just thought i would post back as I have now spoken to the IP

My IP Tells me that to get me to 100p/£ inc of fees there is £6800 remaining. They also said I have no obligation to pay my wifes IVA to get her to 100p/£, although they gave me this figure too which is £14500)

As there are only 5 payments left on both IVA's they are suggesting i pay the £6800 to get me to 100p/£ and then continue to pay the agreed payments into my wife's IVA.

one thing i forgot to ask though; if my IVA completes i assume money i was paying would now be excess and it would be expected that I pay it into my wifes IVA?
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