IVA & Redundancy

[mb2]

I am starting an IVA next month and I'm currently in negotiations via an IP with my creditors.
Co-incidently, my employer has just announced a number of redundancies commencing in February.

Is an IVA able to access funds from a redundancy, voluntary or otherwise?

[odowning]

It maybe possible to offer a Full & Final payment to your creditors using the redundancy fund. Contact your I.P for more information.

You must also inform your practitoner about the threat of job loss.

Funds can be taken by your Insolvency Practitoner as part or full payment of the outstanding debt.

OD

Insolvency Network
Free National Advice
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[Oliver]

mb2

OD is right, before you do anything else, you must speak to your IP and inform them of the situation.

If you do find that you are made redundant and receive a lump sum as a redundancy package, then depending on how much this is compared to the level of your debt, it is very possible that your IP will be able to agree a one off payment IVA. This would mean that you would not have to make any monthly contributions and your IVA would be settled in full on receipt of the lump sum.

If you were already in an IVA and then made redundant, you would have to declare the change in circumstances and lump sum you have received as a mater of course. in that case it would be likely that you would be required to add some or all of the package to your IVA. However, whether the IVA was then settled would depend on your prospects of getting a new job and your ongoing income.

Hope this helps


If you would like further information about IVAs or other debt solutions, please feel free to contact us.

James Falla
www.thomascharles.com