what figure for a full and final ?

[gene]

I have just found out I am going to be made redunant. I have paid into my IVA for 2 years, the total debt was £34,000 and over 2 years I have paid around £20,000 due to payments being £900 a month as I received a large pay rise. I would like to know what will happen if I change my IVA to bankruptcy as I cannot forsee getting a full time job for a while or what figure do you think they would accept for a full and final settlement. My payout will be around £18k
Thanks

[Beans on Toast]

Hi Gene, I'm sure an expert will answer this in full shortly, you would be better off contacting your IP directly so they can give you an idea of what sort of figure you would need for a F&F. It would be a shame for you to go BR at this point if you are going to receive a big redundancy payment.

[Michael Peoples]

Sorry to hear about your redundancy but it should not automatically mean bankruptcy. You could offer a lump sum from your redundancy as full and final settlement depending on how much you need to live on, whether you find a new job and what the new salary is.

Speak to your IP who is there to help and can explain everything to you.

[MelanieGiles]

The redundancy money is a windfall in the IVA, but firstly ought to be used as compensation for loss of office until you get back on your feet again workwise. With this in mind, as Michael says you could try to persuade creditors to allow you to retain a sensible sum of money - say 6 months salary out of the settlement, and offer the balance to creditors.

[s.b]

How on earth can redundancy payouts be classed as a 'windfall' when. It's supposed to be money to live on????

[MelanieGiles]

I think that I made that point quite clearly in my reference to "compensation for loss of office" above.

[David Mond]

You could also ask your IP to propose a variation to allow you a "window of opportunity" to suspend payments until you find out how much your redundancy payment is and whether you are able to get a new job. Worth exploring.