overtime?

Marc2844 · Joined: 02 Nov 2007 Posts: 2

Hi, im a newbie and have a question about overtime. Im now in my 3rd year of my IVA and have had 2 annual reports so far of which i understand is normal practice to have annual reports to see if anything has changed in circumstances. Now originally i was supposed to be paying (for aguements sake say) £400 a month but was made redundant right at the begining of the IVA and thought everything was gonna go Pete Tong. My supervisor gave me a month to find another job which i did do but because now i have to travel to work my expenses changed and im not earning as much as i was. So a meeting was called with my creditors notifying them of the circumstances (redundancy and new job but now less money) and it was agreed that i could pay (for arguements sake say) £200 a month for the first 12mths which then went up to £250 for the 2nd yr as i had had a pay rise. Now the question is, because the IVA left me with no extra money each month (i mean literally i had £7 left out of income and expendeture schedule for myself,wife and 3kids!) so overtime is a must just to do the normal things families do and have some money in our pocket. But so far i have never been up front about working overtime (which i look at it as that i work it for my benefit so i can still try and have a good family life with 3 young kids). Am i wrong in doing this and can i be found out in anyway that might get myself in trouble with the IVA Question

My thoughts are that i work extra hours for my benefit and my benefit only and if had to pay extra because of it then i wouldn't work it and would have to struggle on Confused

Tylah · ClearDebt Advisor Joined: 05 Nov 2007 Posts: 1

Without looking into your individual proposal, it is difficult to say whether you are in the wrong for not disclosing your overtime. Your proposal will indicate what you were required to do.

In your IVA proposal there is likely to be a clause which states that you are responsible for paying 50% of any additional net earnings. The way all clients should calculate this is based on the Income level used in your initial proposal, anything you earn above this level, be it overtime, bonuses, or increases in salary, you will need to introduce 50% after taking account any increased costs of living.

In your case, because your IVA had been amended in a variation meeting with your creditors, your income level will be the level used at the time of the variation proposal.

At each Annual Review, we review our clients P60 and if it shows that they have been in receipt of additional net earnings and have not introduced any, we will normally request it. We do tend to offset any additional net earnings with increases to your essential living cost before amending your payment level or requesting additional monies.

Any net additional monies earned and not introduced will count as owed funds and if at the end of the arrangement these funds have not been paid into your arrangement, creditors could instruct us to not issue a certificate of completion until the account is brought up to date.

I would recommend that you contact us to discuss this in detail, if you are working overtime in order to fund essential costs, then this may well be offset.