Medical retirement

[vegas]

Hi,

I am after some advice. Both me and my husband have both had our IVA's since febuary (first payment) this year. We have never missed a payment.

My husband has had alot of time off work due to ill health and the company he works for is now considering medical retirement.
We are waiting for the official meeting so do not know the ins and outs of everything as yet.

The company doctor will either suggest medical retirement or a termination of contract.

IF the OHS recommends medical retirement he will get a pay out. We do not know how much, if it will be just a years salary...or a lump sum of his pension.

I have read my paperwork for the IVA but all i can find is a small paragraph regarding redundancy and that if made redundant he will be able to keep six months worth of salary.

Im very confused and wonder if they will expect a lump sum of money if he gets a pay out or he will be able to keep the money...the money would be to assist with living expenses etc up to and beyond retirement age. My husband is only 29.

Does anyone know anything regarding medical retirement.
I would appreciate any advice..

Thank you in advance [:)]

[kazzafunk]

Hi - sorry to hear about your husbands health. I took medical retirement 18 months ago at 47. Our creditors accepted a full and final taking only 30% of my lump sum. Our IP (at McCambridge Duffy) submitted a well documented proposal showing that I would need to retain the rest of the lump sum to be able to meet commitments.
I think you will need to speak to your IP about this and draw up an income and expenditure sheet showing whether you can maintain the IVA payments afterwards and if not, how much you think you can hand over to settle the IVA.

[vegas]

Hi, thank you for your reply [:)]

I domt mean to sound really thick...but once my husband has been given medical retirement he will be only claiming benefits. We have three children 5 and under and due to his condition he is unable to be left alone because it is unsafe for him.
He is waiting for a form for dla and i may be able to claim carers allowance but other than that we will have no 'income'.

I have spoken to my supervisor and i told him he may be medically retired..i told him IF he had a payment it would only be his pension and he would have to use that for living etc etc and he said that the IP may ask for the full 100% of the payment! He has really worried me!
I mean surely as there is literally no mention what so ever of medical retirement in any documents it should be treated as redundancy and my husband at leadt be entitled to keep 6 months worth of salary?

I have had to ask for a reduction in payments because he is currently being on half pay which is due to start in december..i really dont know what more 2013 can throw at us

[Michael Peoples]

Your creditors will be sympathetic to his situation and a closedown seems the best option. He could offer some of any payout as it is unlikely that there is anything in the pot so far to offer as a full and final. Your idea of 50% seems more than fair and worth putting to creditors.

[vegas]

Thank you for your reply Michael.

I haven't been made aware that a 'closedown' would be an option, infact i was under the impression that if we had any amount of money then the money would have to be paid into his iva either 50/50 or the full amount. If they accept a 'closedown' amount would this mean he would have technically paid off his iva and will be debt free?

Another question...sorry to be a pain!

If my husband did get x amount of money (we have not been given any indication of what the amount may be) if it were a repetitively large sum of money would i be able to to the same with my iva and offer a settlement figure?

[Michael Peoples]

If your proposals are interlocking any settlement could close both IVAs down. f they are separate IVAs there would need to be two offers but again creditors are usually sympathetic.

The amount to offer would depend on how much he receives but he will need funds for the future so anything that he would offer should be considered. Hopefully you can reach an agreement with creditors but a variation now seem vital. It would at least allow a payment break until the situations becomes clearer.

[vegas]

Yes, i think they are interlocking, we had them on the same day, go by the same budget etc.

My case worker has made no mention of this to me, been very vague and made me worry sick that we would have to pay 100% of any money he would get if medical retirement was granted.
He didn't tell me that we could make an offer and possibly close down the two iva's at the same time.

When we do know the figures etc do you think it would be best if i wrote to payplan and suggested an offer, and possible offer to close the two etc?

I was under the impression going on what my case officer told me that once the lump sum had been paid if we hadn't paid enough into the IVA to clear the whole amount he would still have to continue paying monthly for the next four years.

I was also told that the iva could be recalculated once we knew what benefits we were entitled to...also that the minimum we would be able to pay would be £100 on each IVA even if our budget didn't add up to this..apparently the creditors don't care where they get their money from as long as they get it.

[Michael Peoples]

It may be worth speaking to your IP directly rather than a case worker. This is a very important issue and needs resolved.

[vegas]

At the risk of sounding like a dunce.. what is an IP?
Will the case worker be willing to give me their details?

thank you again Michael you have been a great help!

[Michael Peoples]

The IP is the insolvency practitioner who supervises your case. They would make the fianl decision but are also highly qualified and should be involved in cases like yours. Mundane things can be dealt with by the case workers.

[vegas]

Thank you, i really appreciate your help.

I will email payplan now and ask for the direct number for my IP so i can call him tomorrow.

[vegas]

I have just contacted payplan and i have been told i am unable to speak with my IP and will have to just mail them.

[Michael Peoples]

You are perfectly entitled to speak to your IP as your contributions pay the wages. The regulators would not be happy to hear that an IP will not speak to a client and such a respopnse would not be tolerated in our firm.

[vegas]

I have just been told by a lady who was equally unhelpful and vague as my case officer that there is no way i can speak with him directly and that if i wish i can put everything in a mail to my case officer who would forward everything on to the IP.
I was also told that i can write to him if i wish but he is a very busy man and may not respond.

I don't know if i should write to him or not to be honest.

[Foggy]

No -- Vegas --- complain to their regulators. These people take a fat fee for doing absolutely nothing (not all IP's I hasten to add -- but the particular one(s) we are talking about ).