Redundancy

[wannabedj]

Hi all
I'm new to the forum

I've been in my IVA for over 6 months now and very happy with the way things are going. I've recently sent my bank statements into the IVA company as they are doing 6 month reviews on my case.

Unfortunatly I will be getting made redundant sometime this year, probably anytime between now and Christmas really. This isn't a definate but 90% likeley. I'm trying to get myself prepared for the situation and could do with the money I get for redundancy just in case I don't find a job straight away.
I'm under the illusion that the IVA will require me to pay 50% of my redundancy to them?
If I do this, a big chunk of what I owe would have been sorted but will I still have to pay the same monthly payment amount for the full 5 years? If that is the case, I would have had no benefit in entering the IVA and infact paying back more.

[kallis3]

Hi, and welcome to the forum.

Once you know exactly what is going on, then you need to let your IP know. You should usually be allowed to use any redundancy pay to fund your normal day to day expenses while you seek further employment, usually for about 6 months.

Once you get employment, then any redundancy money left will need to be paid across to your IVA.

As regards payments, you will never pay back more than you owe, plus fees. If you can manage to pay back 100p in the pound before the five years is up, then the IVA will finish, otherwise you continue to make payments.

Fingers crossed that you don't lose your job.

[wannabedj]

I was thinking of not telling them about my redundancy ££ and carry on making the monthly payments. But I could only do that if I can get a job pretty much as soon as it happens.

I presume this idea is a no-no?!? Would the IVA people be able to find this out if I were to keep quiet about my redundancy ££?

Another question

In August I (as well as every1 else) was required to take a 10% pay cut in our salaries. When I informed the IVA people, I still had to carry on paying my normal monthly payemt. Was this correct? I managed to do it, but only just.

[kallis3]

It would be a very big no, no. You should always be honest with your IP.

They would probably be able to find out if you have to send payslips in regularly and they will see that you are no longer working, and if you have to send bank statements in as well it will obviously be reflected in those.

Your IVA company do have the discrection to lower payments by up to 15%. Did you submit a new I&E to reflect any changes?

[wannabedj]

Best to be honest with them then.

I rang them up, eventually I got through to my manager and she said that she'll sort something out and send something (can't remember what) in the post. Yet I recieved nothing. I rang up a couple of time and asked to be called back by my manager but nothing .

[kallis3]

Yes, you do need to be honest.

Which company are you with?

You could try and speak to your IP direct. If you have no joy over the phone, try emailing via this link:

http://www.insolvency-service.co.uk/newipsearch.htm

[wannabedj]

Bains&ernst or something like that!

Thank you for your help!!

[wannabedj]

Another question
(sorry for going on)

They've just done a 6 month review (6th Jan 2010)where they asked for either my P60/Wage slips or bank statements. I sent my bank statements in as this was easier for me at the time. Will I have to do this every 6 months? I've read through some of the other posts on the forum and every one else seems to have annual reviews?!?

[Declan at DebtFreeDirect]

Hi there
It will depend on the terms of your IVA whether reviews are to be carried out annually or every 6 months. Its best to check with your IP. If you cant get hold of him or her, follow the link Kallis put on her post which will provide you with their email address.

Thanks

[kallis3]

My reviews are quarterly, but as Declan says, each company is different.