Paying back overtime in an iva

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darren334
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by darren334 » Thu Mar 15, 2018 1:32 pm
Hi been in an iva for 6 years just coming to an end I've been working over time throughout the iva now they are saying I owe 17 grand can anyone offer sum advice I'm totally stuck
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kallis3
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by kallis3 » Thu Mar 15, 2018 1:37 pm
Hi,

Have you paid any of your overtime across during your IVA?
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Foggy
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by Foggy » Thu Mar 15, 2018 1:41 pm
As per the terms of your agreement overtime is to be shared with your creditors (roughly 50/50), as and when you earn it. Have you been declaring this overtime and paying over your share ? Has your IP done annual reviews and asked to see payslips and / or P60's ?
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darren334
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by darren334 » Thu Mar 15, 2018 1:58 pm
This is were I've totally messed up I haven't paid them nothing I thought the my yearly review would have picked something up just when I've been thinking it's the end I've got all this to pay back all my own fault
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kallis3
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by kallis3 » Thu Mar 15, 2018 2:09 pm
You should have contacted them when you had the payment and it would have been 10% 50/50 depending on what your paperwork said. I think you need to speak to your IP company and see if you can make extra payments to make up your shortfall or ask a relative to pay it for you and then pay them back.
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Lisa Thomas
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by Lisa Thomas » Thu Mar 15, 2018 2:53 pm
Is the figure of £17k calculated on the 10/50/50 rule and is it net of taxes?
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Lisa Thomas
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by Lisa Thomas » Thu Mar 15, 2018 2:54 pm
Did you not declare the correct income when you completed your I&E form?
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kallis3
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by kallis3 » Thu Mar 15, 2018 2:58 pm
Did you send in payslips and a P60?
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Foggy
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by Foggy » Thu Mar 15, 2018 4:25 pm
darren334 wrote:
This is were I've totally messed up I haven't paid them nothing I thought the my yearly review would have picked something up just when I've been thinking it's the end I've got all this to pay back all my own fault


Although the correct disclosure of your earnings is your responsibility, the IP, or his / her admin, should have picked up on this at annual reviews and addressed it before it became a problem.
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darren334
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by darren334 » Thu Mar 15, 2018 4:49 pm
kallis3 wrote:
Did you send in payslips and a P60?

Yeah sent in pay slips and p60 for all of the 6 years
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darren334
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by darren334 » Thu Mar 15, 2018 8:14 pm
Thanks for replying but, yes they have had pay slips, bank statements, p60's updated i&e. Can someone enlighten me how they work out the additional monies? If I'd of known this would of just went for bankruptcy! It's so stressful!
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kallis3
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by kallis3 » Thu Mar 15, 2018 8:18 pm
It should say on your original paperwork how it was worked out. It is usually 10% plus 50/50 on the rest.
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Foggy
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by Foggy » Thu Mar 15, 2018 8:33 pm
As Kallis says, it is usually under the 10% 50/50 rule -- where the amount equivalent to 10% of normal take home pay is yours and the rest is then split 50/50 --- you keep half and half goes to the IVA.

Say your usual take home pay was £2000 per month and one month you get £600 overtime .... you keep 10% of normal pay -- so £200. Then the remaining £400 is split 50 /50 ---- so you give £200 to the IVA and end up keeping £400

Some clauses are written without the 10% bit ... so the whole lots is just split 50/50.
Mrs_Brown
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by Mrs_Brown » Thu Mar 15, 2018 8:46 pm
Foggy wrote:
As Kallis says, it is usually under the 10% 50/50 rule -- where the amount equivalent to 10% of normal take home pay is yours and the rest is then split 50/50 --- you keep half and half goes to the IVA.

Say your usual take home pay was £2000 per month and one month you get £600 overtime .... you keep 10% of normal pay -- so £200. Then the remaining £400 is split 50 /50 ---- so you give £200 to the IVA and end up keeping £400

Some clauses are written without the 10% bit ... so the whole lots is just split 50/50.

Does this maths add up Foggy, or is it my cold addling my brain? I thought 10% of £600 is £60? Leaving £540 to split.
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Foggy
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by Foggy » Thu Mar 15, 2018 9:03 pm
Mrs_Brown wrote:
Foggy wrote:
As Kallis says, it is usually under the 10% 50/50 rule -- where the amount equivalent to 10% of normal take home pay is yours and the rest is then split 50/50 --- you keep half and half goes to the IVA.

Say your usual take home pay was £2000 per month and one month you get £600 overtime .... you keep 10% of normal pay -- so £200. Then the remaining £400 is split 50 /50 ---- so you give £200 to the IVA and end up keeping £400

Some clauses are written without the 10% bit ... so the whole lots is just split 50/50.

Does this maths add up Foggy, or is it my cold addling my brain? I thought 10% of £600 is £60? Leaving £540 to split.


The 10% refers to 10% of the normal take home pay ... i.e you are allowed to earn an extra 10% above usual income before having to share any .... so it is not 10% of the overtime amount, but 10% of normal pay.
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