IVA - Contracting work

hoagie

Hi All,

My fiancee is a year in to her IVA and repayments are manageable and going fine. She is in a permanent job but circumstances may dictate that she needs to get another job and contracting maybe an option.

Contracting will bring in much more money so I would have thought that the monthly repayments will increase but I am wondering what the debt management company will do, will they care as long as the monthly repayments are made?

Also, as a contractor you do not get sick or holidays paid for so is there a way she can argue that money will need to be accrued as a "buffer" for when these situations arise?

I know the best thing is for her to call the company but maybe someone out there has some experience of this?

Thanks,

Ben

Charco_2

The idea would be that she should average out how much she earns.

She will be asked for wage slips and bank statements every year or so so that the IP can verify thaqt she is paying what she can afford to into the IVA... NO MORE AND NO LESS!

If it comes to the end of the year and your partner has earned £3,000 more than she was originally targetted to then she will have to bring in some of this to the proposal, so as you say, try to be disciplined and keep your buffer - don't simply spend your extra money!

Check the terms of the IVA but generally they say that 50% of overtime/extra earnings should be brought into the IVA

hoagie

Thanks Charco,

When she got a bonus the other year they asked for half of it which is not unreasonable.

I'll ask her to have a chat with the IP prior to making any decision about her work situation.

Thanks,

Ben

Charco_2

Usually they dont want to discourage you from doing overtime or earning extra money so they only ask for half. Half for you, half for your creditors. If they asked for it all then there'd be no benefit for you so you might just think to yourself "FUNK it, I'm away home to watch telly!"