I am 2 years into my IVA and have already paid more than £2000 over cue to additional overtime payments and monies received from a PPI claim. I have just accepted early vol redundancy/retirement a decision that was not taken lightly but was upset that I was not able to approach my creditors if a settlement figure would be accepted until I had actually made my decision and had the final settlement figures from my employment. My IVA company have advised me to offer £30000.00 As
settlement of the IVA which equates to approx 65% repayment of the original debt. I have been informed that should the creditors not accept then the whole of my redundancy/retirement payout will be taken by the
IVA, this figure is more than twice the original debt and I will be left with no means of paying my mortgage and very little job prospects as I am 56
and spent 34 years in my previous job. I am at my wits end as if this settlement is not accepted I will have lost everything and also paid more than double the original debt and prob lose my home.
Hi Glynis. You should not have to hand over more than the total original debt, plus fees and possible statutory interest (8% simple on the reducing balance).
Many, helpful, IP's have had the requirement to pay statutory interest removed, if not already excluded. Your IP might not, however, be on the ball as this could have been handled differently from the off.
Who are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have a legal opinion which states that only the statutory element of your redundancy would be claimable by the IP as a windfall. So if you have volunteered to be made redundant you should definitely be able to retain the voluntary element. Why not ask your IP to have a look at this again - it is not right to say that all of the fund are at risk.
