Will I have to give all my extra income to IVA?

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greg141
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by greg141 » Fri May 05, 2017 8:08 pm
I am almost four years into an Iva. I have received a pay rise and have extra income. I have no savings and though I want to contribute to my Iva I also would like to put money aside for financial security. My question is will I have to give all my extra income to Iva, all my expendable money and up my payments to the sum of my original payments plus the extra I get now because of my pay rise ??
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Foggy
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by Foggy » Fri May 05, 2017 8:16 pm
A permanent pay rise (overtime and bonus payments are treated differently) is usually taken into account at the review following the rise and the payment should go up by 50% of the net increase thereafter. Some arrangements take the 50% increase right away, but most do wait until review.
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Lisa Thomas
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by Lisa Thomas » Mon May 08, 2017 2:48 pm
Check your terms - you can usually keep up to 10% above your standard pay and then pay 50% of the extra into the IVA pot, allowing you to keep 55% overall.
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