I'm on my first year of IVA. I'll be made redundant in six months time and get six months salary after that as a redudancy payment. Do I need to pay this sum to my IVA if I don't have a new job by the time I finish my old job? If I find a new job do I need to pay this redundancy money to my IVA.
If I remember rightly, you use this money to fund your normal expenses until you find another job.
When you do find one, then the money left needs to be paid across to your IVA.
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
Kallis is correct - and I do hope that you manage to find a new job relatively quickly, even if it does mean that you have to hand over the balance of monies.
I cannot believe how many redundancies I am hearing of at the moment.
At least Sari has six months notice, by which time, hopefully, another job will be on the horizon.
It's the ones who aren't expecting it that I really feel for. One day you've got a job, the next you haven't.
Scary.
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
There is an awful lot of redundancies just latley. just goes to show no job is secure and the previous threads about payment insurance goes to show it really is an essential.
hope you have more luck in findin a job than im having
ClearDebt offer IVA Protect which is an insurance which kicks in when someone in an IVA is made redundant or is off work due to illness. The insurance pays the monthly contribution for up to a year.
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.
The policy offered by John Tegg of CoveritAll gives protection for the full term of the IVA I believe, for redundancy and sickness. Perhaps John could confirm this if he is "listening in"?
Only for ClearDebt clients.Claims can be made many times during the 60 month period but after each claim and going back to work there will be a new 3 month wait period. This ClearDebt policy has been running since December 2006 and there has only been 1 claim made from a client who was made redundant and now the policy is paying the contribution whilst he/she looks for a new job. The cost of the policy is 2.15% of the monthly contribution. Sadly not all creditors accept it as an expense of the arrangement, but in those circumstances ClearDebt pays it themselves. The policy is a ClearDebt policy.By the way ClearDebt earn nothing on the policy and rebate its commission to keep the costs of same down.
I will certainly look at the possibility of seeing whether Underwriters are willing to extend it to other IVA providers.
Last edited by David Mond on Fri Oct 10, 2008 5:43 am, edited 1 time in total.
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.
I suspect that we will all see more clients losing their jobs over the next few months, and therefore these types of policy may well become more popular with clients, creditors and IPs alike.
Which creditors are you finding do not accept the premiums?
Last edited by MelanieGiles on Fri Oct 10, 2008 8:24 am, edited 1 time in total.
