possible being made redundant whilst in IVA

[bob89]

I'm in an IVA which started in december 2006, and i was worried about being made redundant within the next 6 months.
I owed 59k at the start and i pay £420 amonth now, if got payed out 30k for my redundancy would i have to pay all of this to my IVA ????

Regards

Bob89

[kallis3]

I do know that you are expected to use this money to fund you whilst you seek further employment and any extra would be paid across if you found work.

If you were to receive that amount of money though, you could offer some of it as a full and final and pay off your iva early.

[Angelus]

Hi there.

I was made redundant just 1 month into my IVA. Thought it was curtains, however, my IP told me to 1) not borrow any money off relatives etc and 2) work out what I could afford to pay them and submit a income & expendature spreadsheet.I will say that they do expect the deficit to be paid at your next annual review. Luckily I found work shortly after.

[David Mond]

It is a good idea if the redundancy monies are good to offer a full and final in settlement. But before you do this use the redundancy monies to live and make your IVA contribution whilst looking for and securing a new job. Then once successful get your Supervisor (IP) to offer a F&F settlement.

[MelanieGiles]

I agree with David, and have done this successfully for a few clients over the last couple of years. it is of course a gamble that you will get another job, and I have usually worked on leaving the debtor with six months worth of salary out of the lump sum.

If you simply sit on the monies, and use them to cover your unpaid wages until you find work, any balance will be captured by the windfall provisions of your IVA and is payable to the Supervisor in any case.