This past year has been a massive struggle and my employer made me take a four month wage reduction due to the Pandemic last year. Anyway I’ve been told that it was a precautionary measure to avoid the business going under and as they’ve actually done quite well, they are looking to give us a rebate. My question is do I have to hand over 50% to the IVA? I maintained my monthly payments of £525 with help from family so I don’t really see why I should hand it over because it’s not a bonus and I made the monthly payments due. I’m in my last (extended) year if that makes a difference. Do you have any advice please?
You need to speak to your IP. I would argue, if you had no corresponding reduction in IVA payments, that this is 'late payment 'of wages and obviously not extra income. Part of me screams 'ignore it' on that basis, but another part worries that it will be picked up as overtime on wage slips and mistakenly drawn into the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Thanks Foggy. As I’m in my last year, I don’t want to give them any reason to issue me with a breach so I’ll tell my IP about it. Perhaps they’ll let me knock a month off the extension period if I give them a month’s extra payment from the rebate.
You can try but you'll probably find they'll just put it towards your creditors and the IVA will continue as normal.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Tell them about it, but make it clear that it isn't extra income. It's the income your contributions were based on, when this reduced you maintained those contributions, ie, if you'd had this income all the time, your contributions would still have been the same.