Pay rise

Sophie · Joined: 28 Mar 2007 Posts: 2

My IVA annual review is in December, but my annual pay rise usually takes affect in April. These are not usually huge, around £50-60 per month but obviously will mean more money available to pay in to the IVA. I will notify my IP straight away, but will my contributions increase that month, or with the next review? If they increase at the next annual review, will they require back payments to April? That is quite a long time so could be a lot of money.

Can anyone advise please?

Sophie
x

John · Posted: Thu Mar 29, 2007 11:12 am Post subject:

Hello Sophie.

I assume that you're a client with ClearDebt? If this is the case, your Proposal will have a clause in that states that a percentage of additional income is to be paid into the Voluntary Arrangement estate for the benefit of your creditors.

However, because your pay increase is marginal, and in line with the national average, we at ClearDebt would allow you to keep hold of this additional income as it may come in handy for likely-increased living costs.

You do have a duty to inform the Supervisor of any increase in your wage. If you were promoted, for example, and you had a substantial pay rise your creditors would expect you to contribute additional monies into the Voluntary Arrangement.

If you are not on an IVA with ClearDebt, please consult your IP. Their procedures may be different, and their Proposal clauses may not be the same as ours.

I hope this helps. John McKeown - ClearDebt