Payrise Question

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BailOutMeLikeImaBank

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Post by BailOutMeLikeImaBank » Tue Dec 04, 2018 6:20 pm
Hi

Just a clarification on earnings, I have searched on other topics but couldnt see a definitve answer, especially to Q2..

(q1)Would would happen in the following case...

Start IVA then 6 months later, pay rise, does the new rise go 50/50 share until next review in 6 months, or do i get to keep 50% of ALL payrises until 5 years is up?

or at the next review do i lose all this 50/50 split and start with a new payment level every month, effectively getting nothing extra?

(Q2) If my payment goes due to a payrise, say from 100 to 350 a month, then goes down (for a lob change) to 100 again, will the IVA fail due to a loss of 250 a month or will the IP and creditors just be happy the had an extra 250 each month for a while?

thanks

Foggy

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Post by Foggy » Tue Dec 04, 2018 6:54 pm
The usual clauses ( check your own agreement) are that a permanent pay rise is all yours until the review following the rise and then it is taken into account at that review and any rise is effective from the month following. The IVA payment will increase by 50% of the net increase in income. Some agreements are drafted to the effect that the increase kickes in as soon as you get it and some IP's will just try it on --- the answer lies in your paperwork.

If you subsequently lose the rise, in theory, you should revert to the originally agreed payment (although getting a reduction is harder work than getting an increase !! )
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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BailOutMeLikeImaBank

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Joined: Tue Nov 27, 2018 5:26 pm

Post by BailOutMeLikeImaBank » Tue Dec 04, 2018 6:57 pm
thanks, it makes an IVA whilst 5 years, as opposed to the BR 3 years (IPA) much more attractive as I can work more and see a tangible benefit!

luluj

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Post by luluj » Wed Dec 05, 2018 3:50 am
Indeed ..much better in the long run ..sometimes doesn't feel like that, but the iva in my opinion, is far more favourable
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