Salary Sacrifice with an IVA

fortspies

Hi all, I have recently agreed to an IVA and the meeting of creditors is happening in a week.

I work from home and my computer has died - my work have said I can purchase one via them and have it deducted from my salary. I had no other choice outside of going into the office 24/7which doesn't work with my childcare arrangements so said yes.

This month is also the month I get a bonus from work which should cover this and then some - prior to the computer breaking I was going to delcare this whole bonus anyway as per the agreement as my pay will arrive after the meeting where hopefully everything gets agreed with the creditors.

As this purchase has been agreed before but the pay will come after, will I still have to declare the full bonus amount before this deduction or only what's actually in excess of 10% of my additional pay that goes into my account?

I'm not trying to defraud myself or invalidated the fresh IVA just want to know how I need to manage this to make sure I don't!

sourcrates

You don`t need to do or say anything about it as you are not yet bound by the IVA agreement.

I must assume then, as you are taking an IVA,  that you are a homeowner, with very little equity, and a debt of over £30,000, is that correct?

fortspies

sourcrates said:

You don`t need to do or say anything about it as you are not yet bound by the IVA agreement.

I must assume then, as you are taking an IVA,  that you are a homeowner, with very little equity, and a debt of over £30,000, is that correct?

Not a homeowner, no equity outside of our cars and combined debt of £32,000 between myself and my partner, just wanted an out of the nightmare of the majority of wages going on credit card/loan/BNPL payments to the point where we are using credit cards/BNPL to live. Credit scores would be screwed for the next 6 years without it anyway so seems like the easiest option. My car is still on finance and not part of the agreement and we both need our cars for work. We were looking at around 20 years with a DMP to get everything cleared off so just wasn’t practical. Hate that we’ve got ourselves here tbh. 

sourcrates

I would caution you to think again, an IVA is bankruptcy for homeowners, as assets are protected, if you don`t have a house, you should not have an IVA, the trouble is they lack regulation, and are mis-sold on a massive scale.

You would be much better doing a self managed DMP, whilst saving a  settlement fund, and using settlement offers to end the arrangement within a similar timescale to the IVA, but without any of the restrictions to your finances and lifestyle.