I'd really appreciate any advice on redundancy

[wds2008]

Hi, I'm 40 months into a 60 month x £240 payments IVA = 14400 of an original £27,000 debt. All is going fine however I have recently discovered that there is a chance i may be made redundant(either via voluntary or compulsory methods) later in the year. The earliest I can see this happening including notice period in July. At that point I will be 44 months in and have paid £10560 leaving £3840. I should get a figure of around £10,500 in redundancy pay. I was hoping for some info as to if i could venture an early settlement at this point or whether the IP would keep the majority of the £10,500 as I have heard they can do. My intial thought was to offer £5000 as full & final settlement and keep the remaining £5,500 to cover me until I find another job. I'd really appreciate any advice any one has. Thanks

[MelanieGiles]

Hi wds and welcome to the forum

Your redundancy money is paid to you as compensation for loss of office and ought to be used to replace your salary until you find alternative employment.

I would look to offer a sum of around £3,000 as you may well need to keep the rest to cover your lost salary, and with a saving on IP fees this ought to effect the original dividend pledged. Do you think that £7,500 would be enought to cover you until you find alternative employment.

[wds2008]

Thanks very much for the reply Melanie. Most helpful.

I would imagine £7500 would be sufficient to cover me for until I find different employment. To be honest my reason for the £5000 potential offer would be to increase the chances of the offer being accepted and ending the IVA. Without a job - removing the bind of a debt - particularly as restrictive one such as this is my priority.

I believe I do have the windfall clause in my agreement allowing them to take some of the money and pause the IVA until I find another job. Do you think the creditors/IP are likely to exercise this option or would they accept an offer around the figures discussed? Many Thanks

[Adam Davies]

Hi
Redundancy is not a windfall if you have no job.As Melanie states it is to be used to compensate for no income
I would speak to your IP,make sure it is your IP and not a case worker,and discuss the possibility of your redundancy and your desire to offer a full and final settlement to your creditors when you are first made redundant.
You need only return the original dividend pledged
Regards