Hello again,I have a couple of questions.We have paid 36 out of 60 payments on our IVA and it looks like my hubby will be made redundant soon,he has worked for the same company for 16 years but it has now gone into administration which will mean he will only get the statutory payment.If he was to go straight into another job and there isnt enough redundancy for a full and final settlementof the IVA,do we have to give all of the money to it and if so does it reduce what we will owe or would it be an extra payment?We are with Payplan.Thank you .
If he goes straight into another job there will need to be a new income and expenditure done to determine if ongoing payments can be made. If he does not find a job immediately he can use some of the redundancy to live on until he finds work and the remainder would be a windfall. If he finds a new job paying less and he cannot make ongoing payments creditors may accept payments as full and final even if the dividend drops substantially.
Thank you for your answer,If he gets around £10,000 redundancy but has £16,000 left to pay to the IVA(thats what the last 24 payments amount to) and goes straight into a new job that pays the same as the old one,it would be great to pay the whole lot as full and final but if not would that mean he would have to give all of it over and would only have £6,000 left to pay?or is it not deducted from the total amount?
If his income drops he may have to pay reduced payments until the end but if there is no surplus creditors would almost certainly accept the £10,000 as full and final settlement. The dividend would not drop too much as there is scope for a reduction in the IP fees and also creditors get their money early.
If he finds a job paying the same he would have to continue with the monthly payments in addition to introducing the redundancy money but is that likely in today's market?
Hi
If he does find a new job and has to pay the redundancy money into his IVA you will still have to make the remaining monthly payments based on your disposible income. If payments remain at the same level then your creditors will just receive a higher dividend because of the introduction of the redundancy money.
Regards
The redundancy payment is a windfall, which can be used initially to fund loss of income until new employment is found, but once this happens the remainder of the money has to be paid into the IVA on top of continuing contributions.
Ok thank you for your advice,im hoping we will be able to at least buy a car out of it as once he is out of work we will have no car,he has a company car at the moment.thanks again.
