Extra income on IVA
Hi all, I am new to the forum and wasn’t sure where to post so sorry if this is in the wrong catergory.
I took out an IVA around 6 months ago for approx 15,000 debt to 4 creditors. I pay back 110 a month.
When I took out this IVA the terms were that if I earn more than 870 a month, half of this must be given to the company.
As I am on a zero hours contract my wages differ every month, some months I go way over the limit some months I am well below. I haven’t sent any of the extra money in, I am scared that when it comes to my annual review I will be terminated for not paying this extra money in. Can anyone please shed some light on what will happen? Will the IVA be cancelled or will they look at the times when I wasn’t paid much and average it out or could they work out how much I could of paid and bill me for it?
Thanks in advance for any responses.
I took out an IVA around 6 months ago for approx 15,000 debt to 4 creditors. I pay back 110 a month.
When I took out this IVA the terms were that if I earn more than 870 a month, half of this must be given to the company.
As I am on a zero hours contract my wages differ every month, some months I go way over the limit some months I am well below. I haven’t sent any of the extra money in, I am scared that when it comes to my annual review I will be terminated for not paying this extra money in. Can anyone please shed some light on what will happen? Will the IVA be cancelled or will they look at the times when I wasn’t paid much and average it out or could they work out how much I could of paid and bill me for it?
Thanks in advance for any responses.
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Comments
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When I worked for an IVA company we averaged it our over a 6 month period. I was lead to believe that most companies did the reviews over 6 month periods too.
Your best bet is to call your IVA company and ask. you will not benefit from waiting until your annual review. For 1, not sending in your proof of income is a breach, 2, you may be worrying for months on end for no reason, 3. If you have got monies due it will only be harder to pay it in when you have spent it!0 -
My IVA was reviewed on a yearly basis. A one off overtime or a bonus payment is not regarded as a permanent pay increase. The extra money you get will not necessarily be replicated in following months. As such these payments are treated differently.
Where the overtime or bonus is 10% or less of your normal monthly take home pay you can keep the extra money. However where it exceeds 10% you must pay 50% of the excess into into your IVA.
In other words if your normal take home pay is £1000 and you earn up to an extra £100 (10%) in any particular month you can keep this money. However if you earn £300 more you keep £200. The other £100 must be paid into the agreement.
However, always check with your IP’s office first.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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