Increase in Income

Get expert opinion. This is the place for new questions to be posted.
9 posts Page 1 of 1
 
 

MARK1882

User avatar
Posts: 180
Joined: Wed Aug 06, 2008 5:30 pm
Location: United Kingdom

Post by MARK1882 » Mon Sep 27, 2010 2:26 pm
Hello everybody. Sometime in the new year I have a chance to go onto a different rota at work. Due to including weekends etc my take home pay will increase about £250 per month. Assuming all my other expenses remained the same how much of this increase would have to be paid into the IVA. I have tried researching this & believe I would have to pay in 50% but need some clarication.
Thanks

Mark.
Keep smiling. It could be worse.
 
 

kallis3

User avatar
Forum Expert
Posts: 76945
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Mon Sep 27, 2010 2:47 pm
Hi Mark, well done on being able to earn extra.

You may well have to do a new I&E but you need to speak to your IP about this. You will certainly have to pay at least 50% across.
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
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Mon Sep 27, 2010 4:46 pm
You may be able to keep the first 10% of your basic take home pay and split the rest. This would apply if the money is deemed 'overtime, bonus or similar'. If it deemed a raise to your basic salary it should not be an issue until the annual review at which stage you can claim for any increases in expenditure over the previous year. You would then pay 50% of the new surplus into your IVA in addition to the normal payment.

Speak to your IP when the time arrives who will keep you right.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Broke of London

User avatar
Posts: 7761
Joined: Sun Sep 05, 2010 6:04 pm
Location: United Kingdom

Post by Broke of London » Mon Sep 27, 2010 7:09 pm
I am starting a new job this month and my income is going up by £300pm. My IVA annual review isn't until July. Does this mean I will keep the full increase until the annual review and only pay across extra from the following (August) payment? I don't want a big bill come next August for backdated contribution increases!
 
 

Broke of London

User avatar
Posts: 7761
Joined: Sun Sep 05, 2010 6:04 pm
Location: United Kingdom

Post by Broke of London » Mon Sep 27, 2010 7:11 pm
P.S. Sorry to hijack but I have read and re-read my proposal and spoken to my case administrator and neither will be definitive.
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Mon Sep 27, 2010 10:58 pm
Surely this is covered off specifically under the Income and Expenditure section of your proposals?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Broke of London

User avatar
Posts: 7761
Joined: Sun Sep 05, 2010 6:04 pm
Location: United Kingdom

Post by Broke of London » Tue Sep 28, 2010 12:43 am
Hi Melanie, I am getting tied up with the annual review of I&E which is when the proposal says " the supervisor shal review my I&e to detrrmine whether any increased contributions can be made. I will pay increased contributions from the month following the review, unless agreed otherwise." Then it goes on to say about paying across 50pc of pay increases (after increases in expenses) and the supervisor reviewing income every six months to ensure full contributions are being made and "the payment required will be on a cumulative basis". I am interpreting this second part to mean that come annual review time the increase in contributions can be applied retrospectively. Your level of customer service is rare Melanie!!!
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Tue Sep 28, 2010 2:11 am
I would interpret those terms to read that after the review, if there is an increase in disposable income then you have to increase your payments by 50% of the increase moving forward. Remember that disposable income is calculated after expenditure increases and not before.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Broke of London

User avatar
Posts: 7761
Joined: Sun Sep 05, 2010 6:04 pm
Location: United Kingdom

Post by Broke of London » Wed Sep 29, 2010 12:35 am
Thanks Melanie
9 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”