I am nearly 4yrs in to an IVA due to finish in 2010 and want some advice on what i need to do regarding my redundancy payment £23k. I do not know my IP never met them as my original IVA company passed my IVA on to a new company in Ireland.
1.Do i need to notify my IP that i have been made redundant.
2.I have a 50% windfall clause in my agreement.
3.Basically i dont know what to because in this climate i dont want to end up with no money at all.
Your redundancy payment is meant to finance your living expenses until you find another job.
Then, if there is anything left, it is supposed to be paid over to your IVA.
Not sure if you could use some of this to propose a full and final payment dependent upon how much you have left to pay?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thx for the quick reply my plan was not to say anything and carry on as normal till the IVA is over.
I only went the IVA route as a Bank with which the biggest lump of my IVA refused to help me when i asked for help when i was struggling. so don't really want them to get anymore than i agreed to with my original IP
If you make a full and final offer, it usually will be for no more than you originally agreed unless you can manage to pay 100p in the pound.
I wouldn't advise keeping things from your IP. As I said, the payment is intended to fund your day to day living until new employment.
However, your intention should always be to pay back as much to your creditors as possible regardless of how shabbily they have treated you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
You are duty bound to advise your IP of the redundancy payment, and this firstly needs to be used to supplement your lost income over a realistic period - I would suggest up to six months. Any surplus money will be deemed to be a windfall which would need to be paid into the IVA, althought your IP has to take a sensible commercial decision on this point if you have not found work by that time.
When you say you have a 50% windfall clause - does this mean that you only have to pay over 50% of any unforseen money or assets? That is an unusual term if this is correct, and I would double check the wording to be sure.
Hi
Why not offer a full and final equivalent to the originally pledged dividend, probably your monthly payments multiplied by the months left ?
You can state that the remaining redundancy funds are then to be used for your living costs whilst you seek employment
Certainly do not keep it from your IP
Regards
Does it make any difference that its a joint IVA 50/50 with my wife? also the Redundancy is equivalent to 1 years salary. I will re-read my IVA but from memory mine is slightly different to my wifes
Last edited by Dibble62 on Thu Jan 01, 2009 5:58 pm, edited 1 time in total.
Hi
Can your wife service her IVA without you working ?
If not then her creditors will be open to an early settlement and it would make sense to make an offer to settle both IVAs from your redundancy monies.
Regards
You need to read the terms of both IVA's - then do as Andy suggests - a good practical suggestion!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
is this economic cliamte, and you been in an iva for so long, i would offer a f and f, but not the full amount, keep some back till you get another job
