Settling IVA Early

[Mondie]

I have been reading quite a lot of posts about people finishing their IVA's early and it's got me thinking!

It would appear that I am going to be made redundant at the end of the year, by this time I would have been in my IVA for 26 months.

My question is can I use my redundancy money to use as a settlement as it is a significant change of lifestyle?

My debt is £49,000, I pay 28p/£1, monthly payments of £349, so will have paid back £9074, estimated redundancy is £13,000.

I'm a little confused to how you go about all of this, but my life is changing so rapidly that my IVA is becoming a burden.

Thanks

[Viki.W]

Hey Mondie, sorry about the redundacy. You will probably need this money until you get another job so I wouldn't rush into using it to pay your IVA off. Maybe you could ask for a payment break while you seek work. Please wait for an expert to advise you. Viki X

[pbeck]

Mondie

Tell your IP about it, it shouldn't count as a "windfall" which you would normally have to hand over into the pot, as it's compensation for the loss of your job, however, were you to obtain another job quickly, then your IP may feel that some sort of additional lump sum payment should go into the IVA. In the meantime, put the money into a savings account and don't be tempted to spend it all.

The remaining 34 payments you have to make total £11,866, which is less than your settlement, but if you were to offer that to clear your IVA immediately upon your redundancy, it won't leave you much to live on until you get another job. AT least it looks like you'll be given plenty of notice to look for another job.

[Mondie]

Would I be able use my redundancy to clear my IVA? Would I pay back the remaining 36 months money, would I have to pay anything extra in fees? I would just like to get out of my IVA ASAP! Any advice greatly received...

[indebtforever]

ask your ip what a settlement figure would be you have paid £9074 of a total to pay £20940 you will save on 2+ years fees approx 2.5k in my non proffessional opinion you need to be offering around 8k to end it


good luck

[MelanieGiles]

I have in the past used redundnacy packages to early settle client's IVAs, but you do need to ensure that you will not be left short of funds into the future, as you will not be entitled to JSA if you have received severance monies. if you feel that you could get a new job relatively easily, then a settlement offer should certainly be considered - perhpas leaving you with three months income equivalent to cover the early weeks.