I was recently placed in consultation at work. I called Freeman Jones to advise them of my situation. I was advise with my payments I could KEEP £7530 of my redundancy.
So today I called them to pay the additional into the IVA. I've now been told that I can't keep that money. If i find a job I have to pay that into the IVA. Whislt I appreciate I owe this money. I'm pretty sure this additional amount will take me over what I originally owed? I also feel like I've been completely misinformed. I only took the redundancy because they advised i could keep it.
I had intended to make an offer to he creditors to clear the debt. But not I'm concerned they'll not accept an offer as I have the redundancy.
Where do I stand on this? I had planned to pay off my wedding with this.
Any advise would be great. As I mentioned I appreciate I owe this money. I just feel misinformed.
If you look at your agreement the fate of redundancy money will be detailed in there. The normal clauses allow you to keep the equivalent of 6 months salary, with which to live and pay the IVA while seeking work. The rest has to go into the IVA. The clauses also state that, if you find work during that 6 months, the unused portion ( pro rata) of the retained money must be paid in also. If, as is should be, it is included in the agreement you cannot claim to have been mis-informed I am afraid.
As for what then will have been paid into the IVA: You always owe the full original debt, plus fees and also statutory interest whilst in the IVA -- only at the end is anything unpaid written off ---- this amount will still be less than you would have had to pay to clear your debt under the original terms of the loans.
Regarding paying off your wedding --- if you look at it from the creditors point of view ... any money due to be paid into the IVA belongs to the creditors -- if used to pay off your wedding it will, effectively, be your creditors paying for your wedding .... don't think they would wear that!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Our agreement (with Payplan) stated we could keep the equivalent of 6 months NET take home pay, which totalled about £12k, and only then hand anything over. Husbands redundancy was gov statutory, and with back pay he got around 7k, which we were allowed to keep, even though he found employment 2 weeks later. We used the redundancy + 3rd party funds for F&F. Hope this helps but you must check your agreement. I went through ours with a fine tooth comb!
IVA started Sept 2012, Full & Final accepted Aug 16th 2016 & CC issued 10th Jan 2017
Thanks. I'll get my paperwork back out.
As I mentioned I appreciate I owe this money. I have no issue with that.
What would be a reasonable offer to settle. I've been advise £1400 is what they are expecting over the next year. I don't yet have another job so will need to keep some to cover myself.
Thanks in advance.
As Kazza said, the devil is in the detail ( what was included in the sgreement).
To make a full and final offer ( don't mention "settlement" or "paying off" --- those are a different and much more expensive, animal ) you need to base this on the number of payments still to be paid multiplied by the current monthly payment (add 12 months if equity still needs to be addressed).
The usual scenario, if not re-employed within the 6 months, is to agree a payment break if the IVA is still young ... in the latter years you might get away with a F&F based on payments made to date ( this is more promising if the dividend has been improved with extra payments, like redundancy compensation).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks. I'll get my paperwork back out.
As I mentioned I appreciate I owe this money. I have no issue with that.
What would be a reasonable offer to settle. I've been advise £1400 is what they are expecting over the next year. I don't yet have another job so will need to keep some to cover myself.
Thanks in advance.
Full and Final --- by name only, as it is often neither full nor final, but is often just a moratorium on payments until the IVA is formally closed, but will bring about an early ending.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Apologies for any misunderstanding with regards to your redundancy pay.
As mentioned on here there will be a clause within your paperwork, detailing how any redundancy pay will be dealt with. However, I'd like to discuss this with you and see how we can best move forward with your IVA, especially if you are considering a Full & Final offer.