Hi,
I'm just about to make my first IVA payment, which has been agreed at £108 per month, with an Income Threshold (10%) of £1865 per month.
However, In the time since the IVA was agreed, I have had a pay rise which means my basic income will be around £2070 each month.
Using the 50/50 rule, I will be paying an extra £102, effectively doubling my monthly Payment!
Would it be better for me to request my IP to do a new Budget based on my new income or should I stick to the 50/50 every month?
Permanent pay rises do not fall under the 10% 50/50 rule, they have their own clauses. How they are enacted will depend upon your IP as some IP's ( as with other aspects of the IVA) have started to take a novel, creditor friendly, approach.
The usual clauses, relating to permanent income increases, state that the increase will be considered at review and 50% of the increase will be added to the regular IVA payment from the month following the review. Now, in the past all IP's operated this as referring to the annual review, meaning that, up until that time, all the increase was yours to keep and the increased IVA payments started after the annual review. However, some IP's have now started to slip in an interim review to capture the increase right away.
I am afraid that you do not get the make the choice as to how the pay rise is treated.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
