Redundancy in 6th year because I cannot get equity release.
Hi, I'm close to entering into a 6th year of my IVA because I cannot release any equity because my mortgage is with Northern Rock, now known as NRAM.
Unfortunately where I work, it looks like I might be made redundant in the next 3 months or so.
My question is: Because I'm going into a 6th year because of equity in my property, would I have to give 50% of my redundancy money over to my IVA? or could I use the money to make a full and final settlement?
Redundancy money is payable in full into your IVA.... you are generally allowed to retain the equivalent of 6 months salary, from which you make your normal payments.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Personally, I would view it as very unfair for an IP to take any redundancy money, when an IVA is in its sixth year and only extended due to equity payments. IPs have discretion with regard to windfalls, if the IVA is in accordance with the IVA Protocol, and I would not take this money unless you found a job very quickly after being made redundant.