Paid Four-Weekly, how does this work?

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r0bs0n
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by r0bs0n » Wed May 16, 2018 11:34 am
Hi all,

I get paid every four weeks by my employer, which means that I get 13 pay days a year, usually around Christmas time I get 2 pay days, one at the beginning of the month and one at the end, usually it's a freebie for some of the big bills that come out on the first which was budgeted for the payday on the month before, so any advice on this would be ideal, as it'd mean around Christmas I'll have a couple hundred pounds left over, this was usually how I paid for Christmas. But if the IP factored the extra pay day in to the agreement then I wouldn't be able to afford the repayments, so I'm not exactly sure. My creditors meeting is tomorrow and it's only just come across my mind about being paid four-weekly.
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Foggy
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by Foggy » Wed May 16, 2018 11:48 am
This should have already been addressed and different IP's will take different approaches --- often calculating the monthly equivalent. If the IP is using the 4 weekly payments and treating them as monthly, you could lose half the "extra " payment as it will be treated as extra income. On the other hand, taking a slightly larger payment each month, based on the 12 monthly payment equivalent, could leave you a little short each month, but lets you keep that "extra" paypacket.
You really need to have an urgent chat with the IP before you sign up to something that might prove unaffordable.
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Lisa Thomas
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by Lisa Thomas » Wed May 16, 2018 12:15 pm
You need to speak to the IP urgently.
r0bs0n
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by r0bs0n » Wed May 16, 2018 1:47 pm
Spoken with my IP who said it shouldn't be a problem but they've put a note on the system mentioning it anyway so that it's on record for the meeting tomorrow and things like that, it's put my mind at rest.

He also said that my creditors are mostly from major companies and I shouldn't have an issue with it being approved but obviously there always "ifs and buts" but fingers crossed I'll know by lunchtime, I'm absolutely bricking myself, I really want to get on the recovery road to be debt free.
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Lisa Thomas
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by Lisa Thomas » Wed May 16, 2018 3:59 pm
It should already be detailed in your proposal - you would have had to complete and include an I&E form and they would have had to calculate your contributions and disclose how often you were proposing to pay them...
r0bs0n
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by r0bs0n » Wed May 16, 2018 4:28 pm
Lisa Thomas wrote:
It should already be detailed in your proposal - you would have had to complete and include an I&E form and they would have had to calculate your contributions and disclose how often you were proposing to pay them...


Well I can’t remember if I told the referrer or the IP, it was mentioned before but they said as long as I can afford my payments I should be ok but it’s on file anyway, so I’ve done all I can by telling them to make sure but they didn’t seem phased by it.
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Lisa Thomas
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by Lisa Thomas » Thu May 17, 2018 11:13 am
You need to look at your proposals to see what it is you have proposed...
Mrs_Brown
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by Mrs_Brown » Thu May 17, 2018 11:46 am
Hope the meeting went well, or goes well if it's later!
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kallis3
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by kallis3 » Thu May 17, 2018 12:47 pm
How did it go?
r0bs0n
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by r0bs0n » Thu May 17, 2018 2:16 pm
It got approved! Very happy as I felt so sick this morning being anxious waiting for that phone to ring. Slight modification which I can deal with but all in all happy!

They just said don't worry about the four weekly thing, they said any major issues will flag up at a yearly review but currently they can't see any.

When I was told to drain my accounts I took about £500 with me, obviously I have this sat in my bank now and it's not predisposed to creditors now the IVA is accepted, is this mine to do what I want with? Maybe get a couple of bits of clothes that I couldn't before, and put some away for a rainy day, my car needs repairing which it'll use some of as well.

I just wasn't sure if I'm allowed to have money sat in my account, and if so how much?
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kallis3
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by kallis3 » Thu May 17, 2018 2:36 pm
Brilliant news - really pleased for you! I would certainly put this to one side as a contingency fund.
r0bs0n
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by r0bs0n » Thu May 17, 2018 2:43 pm
kallis3 wrote:
Brilliant news - really pleased for you! I would certainly put this to one side as a contingency fund.


Thank you! :)

Would you withdraw it?

Im due a bonus in August of maybe £1800, i understand tje 10% 50/50 as thats what my clause is as i ahd overtime paid today but luckily i didnt have to pay anything. But obviously if i get that bonus ill have a fair amount in my account, would this be ok? I wondered if i saved them up id be allowed to do that and go on holiday or something.
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kallis3
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by kallis3 » Thu May 17, 2018 3:00 pm
You will have to pay some of your bonus across but the rest is yours. Open a second account (such as Co-op Cashminder) and put any savings in there. Not a savings account as such and must be done via phone or in branch.
r0bs0n
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by r0bs0n » Thu May 17, 2018 3:09 pm
I could apply for an account online it seems quite easy these days, my question is that if I saved what extra I earned over the course of a couple of years and say I had £2000 in there, wouldn’t my IP want that paid into the IVA due to having visibility of it being my account?

I appreciate all the help you’ve given, it’s really helped me understand my position.

I’m going to withdraw my allowances in cash so that I know what I have to spend and budget properly, I ran that by the IP and they said that’s fine too.
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Foggy
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by Foggy » Thu May 17, 2018 3:11 pm
r0bs0n wrote:
kallis3 wrote:
Brilliant news - really pleased for you! I would certainly put this to one side as a contingency fund.


Thank you! :)

Would you withdraw it?

Im due a bonus in August of maybe £1800, i understand tje 10% 50/50 as thats what my clause is as i ahd overtime paid today but luckily i didnt have to pay anything. But obviously if i get that bonus ill have a fair amount in my account, would this be ok? I wondered if i saved them up id be allowed to do that and go on holiday or something.


You are allowed to save your legitimate shares of bonus payments and overtime as well as small windfalls that do not trigger the windfall clause. As Kalis mentions, it would be wise to hold these funds in reserve for emergencies as I am sure they will be required at some point over the next 5 years or so. Rather than having a surplus showing on your current account (where it is bound to be nibbled at) I would suggest popping these funds into a savings account somewhere.
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