im in 18 months into an iva. i have just being made redundant as i am recieving redundancy of 32k plus lump sum from pension of 33k . i wanted to make full and final settlement offer to my crditors of 21k which is what my remaimg monthly payments are on iva. is this likely to be acceptable and do my creditors have any legal riht to my remaing funds ~?
I am not 100% sure on this, so I will bump it back up to the top for a technical expert to advise you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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The pension money ought to be safe from the clutches of creditors, as it would be so under bankruptcy proceedings, so if you wanted to use some of that money to effect a full and final settlement that ought to be fine.
With regard to the redundancy money this is less certain. This money is paid to you as compensation for loss of office and needs to be used to fund your lost salary until you find alternative employment. At that time, the balance of monies held will represent an windfall and will need to be paid over to the Supervisor in their entirity. It is not therefore your money to deal with or negotiate on.
Notwithstanding this face, I have on several occasions taken an offer to creditors on the basis of a redunancy payout and allowed them to make the final decision. Your own IP might be prepared to consider this - and it is worth at least having a chat with them in this regard.
You will still need to declare the redundancy money to your IP, and continue to look for alternative work to mitigate the reduction in the payout and maximise the eventual windfall receipt.
You can try - at the end of the day they are accountable to your creditors to supervise the IVA in accordance with statutory provisions and the terms of the arrangement.
Hi
I would be surprised if your offer was rejected.
Basically the redunancy money is yours to use until you find employment again, so when you make your offer to your creditors they will have a choice of the original dividend paid or rejecting and having no guarantee of any further money.Who knows how long you will be out of work for ? They would surely want their money sooner rather than later ?
It may pay to offer slightly more than the original dividend as a sweetner.
If your offer is rejected then yes continue making your payments, however once you find work again the balance of the redundancy will be expected to be paid into your IVA.
Good luck
