I am currently 3 1/2 years into an Iva, with (according to our contributions) we owe around £7,300. I've just found out that I'm going to be made redundant so I plan to settle my iva using my redundancy, I have spoken to the debt company that are dealing with the iva and told them of my intention, I assumed that I would have to pay what I owe in contributions, but I was told that there are other things to take in consideration when you have an iva, and they want bank statements and expenditures, why do they need those if I'm settling early. I hope they're not asking for more money, cos if they are I won't settle.
You always owe the full amount of your debt plus fees and statutory interest at 8%.
If you receive a windfall like redundancy or inheritance or lotto win it has to be paid over to the iva company then if there is any money left it will be returned to you
Today 1st of December 2016 the vultures finally flew away
You sometimes are allow 6 months wages from the redundancy money - but everything else in paid in. You may not have any choice but to pay this money over - you need check your own terms and conditions of your own IVA
You could try and borrow funds from friends/family to offer a full and final. Then when the IVA is completed you could look at the redundancy situation. However if you are sure of the redundancy and it is not just a rumour then you need to inform your IP.
Hi - with redundnacy unfortinately you are usuaully allowed to keep 6 months but the rest is payable into your IVA regalrdess. Your IVA would only be finished earlier as a result if those proceeds were enough to pay the total debt, costs and statutory interest off in full.
The difference is with 'normal' f&f offers the funds come from third parties and this is when settlement is based on the amount of contributions left.
In your case the money is coming from redundancy so is payable into the IVA estate regardless as an asset.
