Hey there...I am currently in an iva and have been for 19months. I was just under £17k on debt. I have been given a heads up at work and told that redundancy is on the cards very soon. My redundacy payout is hopefully gonna be around £4.5k. I think I will be getting another job straight away. Will this money go into my Iva and i will still have to carry on the payments. In that case I will be paying off more than I owe!! Can I settle early with that amount or is it to small? Where do I stand?
If you are made redundant and have another job to go to then this redundancy money will have to go across to your IVA. Unless you can repay your creditors in full, you will have to carry on paying until you have paid back 100p in the pound plus fees.
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
You will need to check your proposals and any modifications that may have been put forward.
Usually, redundancy will be considered a windfall, and a percentage will be payable into the IVA, but do check.
You can certainly put forward a variation to creditors, offering a lump sum payment in full and final settlement. It will depend on how it compares to the original offer and how early you will be concluding the IVA, as to whether creditors are likely to accept or not.
If it is classed as a windfall then the vast majority of it will have to be paid across.
You could try offering it as a full and final, but if you can continue maintaining your payments on top of that then it may not be accepted.
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
It will depend on what your new job pays. If your income drops and you no longer can fund an IVA then creditors will likely accept a full and final or reduced monthly payments. If your income stays the same the IVA will just run it's course as normal.
