I have an IVA do I need to hand over all of my pay rise?

Answer 1

The rules for each IVA are set out in the proposal, but the general rule is that if you receive a pay rise when in an IVA the creditors will expect that 50% of that rise to be offered to them. Similarally, if you earn extra through regular overtime 50% of that should be passed over too. This means that your incentive to work hard is not totally removed but their ability to recover their debt is maximised.

You have a resposibilty to tell your insolvency practitioner if your circumstances change. If you don't mention this to your insolvency practitioner at the time of the rise, they will pick up on it at your anual review and possibly backdate it. If you want extra advice speak to your insolvency practitioner, but this will of course be recorded. If you prefer not to speak to them formally, you could call myIVA-Adviser.com on 0800 088 7503 for an informal chat or visit their website at

http://www.myiva-adviser.com

good luck

Answer 2

My understanding is that IVA is 'Voluntary' - if you decide not to pay off your debts as per the agreement they can make you Bankrupt.

If the agreement says you will use 'all your resources' or some-such, then I guess you should hand over the pay rise -

But why wait ? if you can pay off the agreed ammount early why not ?