back pay + F&F

[cherry545]

Hi there, its been a while since I have posted on this site, I have always found this site invaluable. Well there has been a slight change in my circumstances. I am 3 years into an IVA with Grant Thornton and soon I hope to receive around £10k in back-pay (due to the fact I have been underpaid since 2009). The balance of my IVA is around £7k. Also EIC are working on claiming PPI on GT behalf.

I wonder if anyone can advise me will GT wish to claim all £10K of the money or just the £7k?

any replies greatly appreciated...

[Adam Davies]

Hi

Only GT can give you the correct answer on this one. It may be seen as a windfall so be prepared for that, hopefully though you will be able to use it to settle your IVA

Regards

[MelanieGiles]

When you say the balance of your IVA is £7,000 - is this the value of the remaining payments you have to make, or that which would see your creditors repaid in full?

[cherry545]

Melanie, this would be the balance of my remaining payments under the IVA, no this amount wouldn't pay my creditors the full original debt amount.

[MelanieGiles]

Then I suspect that they will take 50% of the £10k, with you then continuing to make monthly payments at the contractual level.

[Wild Rose]

If the IVA take 50%, could cherry545 then use their 50% share, i.e. £5,000 to make an offer in F&F settlement?

[Michael Peoples]

If this is backpay you could try and calculate what would be paid under the 10% 50/50 rule as this may work in your favour. You need to get this agreed with your IP and possibly use some or all for a full and final settlement.

[MelanieGiles]

Yes they could Wild Rose.