I understand that if I earn say £100 in overtime (after tax) that I have to pay £45 towards my IVA. Firstly is that correct. In secondly when do I pay this money?
This seem strange as most IVAs have the 10% rule which means if your net income increases by up to 10% there is nothin to pay and you split everything over that. Based on your calculations you earn £100 per month take home!
Check with your IP as to what your proposal and modifications state but normally any monies owed are to be paid within 14 days of receipt.
Agreed, the example quoted assumes overtime earned minus 10% divided by 2 equals £45, which as an equation is correct but takes no account of the starting point of income.
For example, if normally wage is £500 then the first £50 is safe so the extra payable is £25. For £800 it is £10, and for £1,000 and above then there is no extra at all.
I hope that makes sense.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
So if i earn £370 per week take home pay and can earn £37 per week without pay anything to my IVA. So if I earn £70 per week I would pay £16.50. All figures quoted are after tax.
In my IVA, we dont have the 10% rule and only the basic 50/50.
The only overtime my husband gets is double time for bank holidays if worked.
We pay it as soon as we receive it - to avoid temptation to spend!
Some/many IVAs have the 14 days policy. Though ours is to be paid in or after 6 month wage reviews. But we pay it in asap.
Check your proposal to be sure & Im afraid I cant comment on the 10% working out.
Last edited by MrsKnight on Wed Jul 14, 2010 6:33 pm, edited 1 time in total.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Pugwash wrote:
So if i earn £370 per week take home pay and can earn £37 per week without pay anything to my IVA. So if I earn £70 per week I would pay £16.50. All figures quoted are after tax.
Yes,thats correct.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
