Pay Cut

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suburban hippo

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Post by suburban hippo » Wed Aug 04, 2010 9:40 pm
Hi. My company has just announced a temporary 10% pay cut for all UK staff. Effective from Oct 10 to Mar 11, but no guarantees that normal pay will resume after Mar. Hopefully it means that I'll still have a job in March!
Am I able to ask for a 10% IVA payment reduction over the same period? Would this have to be agreed by creditors again? And if agreed, what would happen if my pay didn't revert to normal in Mar? I guess the payments would be added to the end of the IVA? I'm due to make last payment in Nov 11 (can't wait - so tantalisingly close...)

Thanks for your help
 
 

relieved33

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Post by relieved33 » Wed Aug 04, 2010 9:45 pm
a 10% cut in pay will equate to more than 10% of your IVA payment. Your IP has discretion to reduce your payment by 15% witthout having to go to creditors for approval if that will help. Call your IP and I'm sure given he current economic climate that they will do all they can to assist.
 
 

L-E-E

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Post by L-E-E » Fri Aug 06, 2010 10:15 am
Speak to your IP about applying for a variation order. If you are receiving more income you would be expected to pay more and if you take a drop in income this can be accommodated.

Lee
 
 

plasticdaft

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Post by plasticdaft » Fri Aug 06, 2010 10:56 am
Your Ip should be able to reduce your payments. A new I and E may be required. Shouldnt be a problem and at least you still have a job!!!

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

MelanieGiles

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Post by MelanieGiles » Sat Aug 07, 2010 4:44 pm
You will need to check with your IP to see whether you are entitled to reduce your payments by up to 15%. Not all proposals do provide for this.
Regards, Melanie Giles, Insolvency Practitioner
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