Iva question

kw555

Hi there,my wife and i entered into an iva a year past in june and are repaying at approx 45p in the pound.So far all is going well and we are learning to spend what we have and not what we dont have which has been a humbleing experance but a worth while one.Thing feel so much better spending the money in your pocket.Recently my wife was informed that she will be getting a significant back pay but as to date we dont know how much,it could be £2k could be £10k,we wont know until it comes,now the question! Does this all have to be paid into the iva? or 50 %? or is there anyway of keeping it?(this would be the best option but cant see it being the right one)I have rung the company we have the iva with on a couple of occasions and have once been told that we would have to pay 50% into the iva (we could just about stomach this at a push) but the last time i rung we were told that the whole thing has to go into the iva!(my wife hasnt slept properly since)We currently rent our house from my mother at a very low amount per month(£216) but we pay the rates ,electric, repairs etc.When we were told that we would only have to pay 50% we had earmarked an approx amount in our heads to carry out some much need repairs and replace most off our knackered furniture etc with it,its not luxuries but some much needed replacements which otherwise we could never afford! please advise someone

Foxy-Stoat_3

The norm is 50% at the end of the year, but read your contract, it will be in there.

FoggyBrain_2

This is a throny question. As this is back pay, as opposed to overtime, had it been being paid when it should have been, it would have been included in the disposable income and you would never have seen it (your dividend, already a good one, would have been improved though). So, on that premise, the whole lot is payable into the IVA!

What I would do is to assume, in your heads, that at least half of it will go to the IVA. Then try to make a case to your IP for retaining at least some of the balance for "essential" repairs and replacements. You might be able to keep at least some ( but don't count on it).