Hi,
Im into my IVA. from this month my salary will be increased by around £60. i was wondering whether IPs let me keep it for myself or pay it to the creditors?
You will need to notify your IP and pay across at least 50%. I've just asked on the other Increase in Income thread whether we need to pay the additional from the month we start receiving it or following the annual review.
Basically take into account any additionl expenditure say £10pm, then you would keep £25 and pay the creditors £25.
I have not yet paid anything across when I've had a payrise as everything else has also gone up.
Speak to your IP though first.
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
I got a payrise at the end of may I spoke to my IP as my review is not till dec, saying by that time i would of got use to extra money they said they won't change payments till review and that it will not be back dated.
Not been an issue for me as no rise in 2 years and well the boss is still laughing I think from when I last asked her what the chances of a cost of living increase at least were [:D]
1st payment Oct 2008, last payment Dec 2013. Certificate received March 2015 due to PPI claim.
Mine was due this month, won't get paid until January so just in time for my annual review.
The good thing is that I will get to keep the backpay.
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
This is something that I was wondering about as my hubby will get a pay review in April and hopefully if our IVA is sorted by end of November it means we will have nearly 7 months of increased money. I understand that when the review is done there will be exp to consider too as most of our household things like Council Tax, House Insurance and motor insurance all go up in the same month. But what about the difference.
If we get an increase of say 40 and our exp is increased by say 15, should we save a portion of the 25 remaining for when the review is done, I presume that they will want the balance.
I have this thought that we will have to have a sep save account for all the little bits that we think we owe back from overtime, increases etc., LOL
Mel will sort that out with you. I think, and I'm sure Mel will jump on me if I'm wrong, that she looks at payrises at the annual review and not before. Not sure about any backpay though.
As to overtime, it's usually best to pay it across straight away, that way you're not tempted to use it.
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
I understand that Kallis, thats not in question, its not backpay from the employer I'm thinking of, what I meant was, backpay to IVA from increase. Our review of IVA would be 7 months after we have our rise. For those 7 months what do we do about the extra amount. Do we save it to pay at review time, or does it get paid over straight away or do we save it somewhere, or is it simply that the money is ours and we should be grateful.
I know Mel will sort this with us, its just one of those things that you think about when you see someone else's post and I'm not going to ring up for that just yet
It differs from IP to IP. Mel's team won't mind you ringing up with the odd question. She may well be on later or Tina so I'm sure they will help you out.
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
Not sure, but I think that if you get a payrise before your annual review, it comes under the 10% 50/50 rule. So if you earn £100, and you get, say a £20 a month rise you would hand over £5. Then when you have your annual review, once your new i and e is worked out, if there's a surplus your payment would increase by 50% of this amount. So therefore,using the same example of earning £100, if you got a payrise of anything under £10, it wouldn't be looked at until annual review. I would probably let my i.p know anyway though, just to be on the safe side!
Apologies if I've got this wrong! I'm also with Melanie Giles, so it might be the same for you. Let us know what they say when you ring.
x
Unless the payrise is significant, the increase will be picked up at the annual review and only effective from that point forward, so no need to save up specifically to pay extra monies into the IVA - but a good idea to have a savings account in any case.
