I am currently in an IVA. I have just received a compromise agreement from my work should this be treated the same as a redundancy or can they take it all off me? I am worried because I don't have a job to go to and I was on half pay for the last two months due to sickness.
This could be deemed a windfall but I think your IP and creditors would take the view that it is covered by the redundancy clause and allow you to retain up to six months expenses.
You could offer a full and final using some of the funds if you are unlikely to go back to work so have a word with your own IP who should be able to help.
Thank you for this reply, I will speak to my IP regarding the possibility of using this as a full and final payment.
With regards to a full and final settlement is this usually the amount you have agreed to pay back during the IVA term?
Not if there has been a change of circumstances. Since you are no longer working the payments would not be maintained anyway so the original amount would not be achieved.
When I accepted a CA of 6 months, I was allowed to keep it as long as I could keep up my payments every month.
It was 6 months and I was out of work for 9 months so the helpfulness of the IP helped as I was able to look for work as well as maintain my IVA with enough to live on until I found work. Its best to speak to your IP as he/she may be able to help the way mine helped me.
IVA completed!!! Looking forward to getting my life back! Stay positive and you'll get there in the end.
Thank you for your reply. I have spoke to them and they are going to look at my situation in more depth, although they are currently treating my compensation as a windfall.
Hopefully it will work out as far, as I am concerned it is not much different to a redundancy and I did not choose to be out of a job.
Fingers crossed.
A compromise agreement is treated exactly the same as a redundancy payment, which is a windfall covered under the terms of your own arrangement. How much are you going to receive, and how much is your monthly net salary currently? Even if you are allowed to retain six months salary equivalent, you ought to be paying over the equivalent of six months IVA payments to your supervisor at the same time, along with any balance of the redundancy monies remaining - so long as you have the usual redundancy clauses.
Your own IP ought to give far better and more specific advice, and they will want to see a copy of the agreement I am sure.
Thank you, I was always prepared that I would have to pay anything over my 6 months net salary into my IVA. I was just shocked when I was told that all the money would be taken and they would have to put a case forward to see if I can keep some of the money until I get a new job. It is frustrating as this could take a while so I could potentially spending money that they say is theirs, but I need to pay bills and buy food and this is the only money I have.
There is a redundancy clause in my contract and hopefully they will see sense that it should come under this.
Thanks again
It does really depend upon the terms of your own IVA, Caz. Not all cases have the ability for you to retain six months salary equivalent, so do check to see whether this relates to you or not. Most IPs will take a common sense approach and at least leave you with sufficient money to cover your basic outgoings.
Do you think it would be fair for me to ask for a final settlement?
I owe approx £66000, I have an agreement to pay £18000 which may be extended by 1 year. I have paid in 6000 and if they take most of my compensation they will have taken around £260000 in total. I won't be able to get another job paying what I was earning and therefore my payments would decrease.
Do you think this would be a reasonable compromise?
I think that a settlement is a possibility for you Caz, more so if you can demonstrate that that reduction in earnings is very realistic for you. Best to chat through with your IP, and try and come to some happy compromise with regards to what they are comfortable for you to keep, and what needs to go to creditors. If a reduction in salary would result in you having no disposable income, it does make the proposed settlement far more feasible.
