Is it likely that payments will be renegotiated?

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Meash

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Post by Meash » Mon Aug 16, 2010 12:12 pm
Hi, My IVA was organised 2 years ago and since then I have gained promotion in my current job. I make monthly additional payments to my IVA and have never been behind with payments. Prior to accepting my promotion I enquired of my IP what affects this could have and was told that I simply had to pay 50% of the additional revenue into my plan. Is it likely that at my next I and E review that my payments will be renegotiated?
To be honest if that is likely to happen I may well ask to be demoted. I would very much appreciate your input.
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 12:17 pm
Your I&E will be looked at as normal, and payments based on that. Don't forget that expenses will have gone up as well.

Look at it like this, you will paying back more to your creditors, which has to be a good thing, and once the IVA has finished you will have all that disposable income to play with.

I certainly wouldn't ask to be demoted - the IVA won't last for ever.
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
 
 

Shining

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Post by Shining » Mon Aug 16, 2010 12:20 pm
Totally agree with Jan, think about when your IVA has finished as even if you're paying more into it now, there will be more disposable for you on completion. Well done on the promotion by the way. At review time as well as listing your new salary remember there could be other outgoings that have increased as we're all too aware of in the current climate. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

MelanieGiles

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Post by MelanieGiles » Mon Aug 16, 2010 9:22 pm
Clients often say to me what incentive is there to progress their careers during an IVA, if some of their additional earnings have to be handed over to pay debts.

There are lots of incentives - better working conditions, more respect from your peers/boss, and additional money you can keep to spend on whatever you like. With the 10% benchmark in operation these days, it is pretty difficult to see how this can be viewed as harsh.

Never put your lives on hold simply because of an IVA. They really don't last for ever.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Meash

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Post by Meash » Tue Aug 17, 2010 8:54 am
Thanks Melanie, I don't understand what you mean by "10% benchmark". Could you or someone please explain?
 
 

kallis3

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Post by kallis3 » Tue Aug 17, 2010 8:56 am
You keep the first 10% of additional earnings over and above your normal wage and the rest is split 50/50.
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
 
 

Meash

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Post by Meash » Tue Aug 17, 2010 8:59 am
Thanks, does this 10% change from IVA to IVA, as during the time in mine I have earnt bonus's etc, but Varden have requested 50% of everything earnt. The 10% rule did not seem to apply to that.
Last edited by Meash on Tue Aug 17, 2010 12:53 pm, edited 1 time in total.
 
 

Shining

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Post by Shining » Tue Aug 17, 2010 1:20 pm
I do believe that some IVA's do not have the 10% ruling Meash x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

MelanieGiles

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Post by MelanieGiles » Wed Aug 18, 2010 1:02 am
You would need to check the terms of your own IVA proposal to see if you have the benefit of the 10% ruling. In my firm we switched over to this as soon as it was introduced in around 2007.
Regards, Melanie Giles, Insolvency Practitioner
 
 

dutong

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Post by dutong » Wed Aug 18, 2010 2:22 am
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danny4

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Post by danny4 » Wed Aug 18, 2010 6:32 am
I have to pay 50% of everything as it was in my terms. But thta's fine. I woulddn't put my career on hold as everone else has says the iVA will come to an end and then you will be debt free. By the way congrats on the promotion also
 
 

Meash

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Post by Meash » Wed Aug 18, 2010 9:56 am
Thanks everyone. I have checked my terms and there is no 10% ruling.
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