i am in the 4th year of my iva and have been made redundtant last week can the iva take my payout over the months or can i offer a token payment untill i find a job also what would happen now if i was made bankrupt how long would this stick with me, i rent our home from a local council,i currently pay 495 pounds per month payout was 5k
You can use your redundancy to make all your essential payments but I believe once you find another job the remainder of your payout will have to be handed over to your IP as it comes under the windfall provision
You will have to speak to your IP and tell them of the change in circumstances. They may reduce your payments for a while.
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
Your payout is strictly a windfall and needs to be paid into your IVA estate. However I would discuss with your IP how much you need to keep (say up to say 4-6 months) of your previous net take home pay - and then pay in the balance and keep the IVA going or apply for a variation to accomadate your current situation.
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.
Presumably with a settlement of only £5,000 this is not going to last for 4-6 months? If you are unable to find another job for say the next six months, your IP may be able to get creditors to agree to a longer payment break, or even to accept what has been paid to date in full and final settlement.
Good point Melanie - hence have a chat with your IP.
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.
