We are in the process of applying for an IVA at the moment but my husband may be getting made redundant soon. He will receive some redundancy pay. Will we have to advise the IVA company of this money and if so can they demand it to be paid to our creditors ?
Your husbands redundancy pay will be used in lieu of salary to pay normal expenses until he gets another job.
Once he has found further employment, any redundancy money left over should be paid across to the 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.
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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 personally would advise against an IVA if your husband is under threat of redundancy. For an IVA to work successfully, there has to be a clear expectation of commitment on your part which your IP will need to verify.
I would hope that, if made redundant, your husband would then find another position relatively easily, at which time an IVA may still be possible. A holidng DMP in the meantime is possibly the better solution.
