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This is the place to ask questions if you are already in an Individual Voluntary Arrangement
By Rick332
If I start a job will I end up paying more into my iva than original payments to my creditors? I have read somewhere that you have to pay 50% of earnings so this would be more than I originally paid. Is this true?
By Melissa S
Hi Rick332 and welcome to the forum

If your income changes when you are in an IVA you must let your IP know and they will review your circumstances. How much you will have to pay extra to your IVA will depend on how much your income has increased, it is not as straight forward as 50% of your income.

It will depend on your living expenses and income, but yes if you are earning more and your living expenses are the same then it is likely that you will need to pay more to your creditors. Although if you are spending more due to your new job in fuel for example that this will be taken into account. A rule of an IVA is that you must be seen to be paying as much as you can afford to.

I hope this helps and please come back and let us know how you are getting on and if you need any further help.
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By James Falla
Hello Rick332

The 50% rule you have heard / read about in terms of pay increases while you are in an IVA is certainly not 50% or your earnings. In fact the rule works like this.

Firstly when you know what your new income will be you will have to calculate your new disposable income. However and here is the important part, you will not have to pay 100% of your new disposable income amount into your IVA. You simply pay your original payment plus 50% of the difference between your old DI and your new DI.

As such if your original IVA payment was £100 a month and your new DI is £200 a month. The difference between the two is £100. You just have to increase your payment by 50% of this difference so your new IVA payment will be £150 a month not £200.