Redundancy opportunity or not?

[Wooster]

Hi All,

Just a bit of background first - I am coming up to the first anniversary of my IVA in March 2010 of a SIX YEAR IVA, as insisted on by Northern Rock. I have no equity in my house due to a First Charge claim by First Plus on a secured loan against my home. I have maintained all payments thus far and have had no problems with my IP and have had no change in my circumstances.

I possibly have the opportunity next year to take voluntary redundancy and a golden handshake, the approximate payout is likely to be equivalent to my current annual salary.

I would really like to use the redundancy to continue my current standard of living and maintain all outgoings for the next year whilst considering one of the following options:
i) Retrain for a new career either through college or a paid for course and then seek either employment or set up a self employed business.
ii) Buy a franchise with some of the redundancy.
iii) Get a similar job and hide the redundancy under the mattress.
iv) Go to Vegas and blow the lot.

I have two questions:
i) Are any of the above viable options?
ii) Would my IP insist on taking my 'Windfall' at the risk of making me bankrupt with no equity?

I have been a regular visitor to these forums since first considering an IVA and have found a lot of the advice invaluable and I am happy I took the plunge. However, in less than a year I find circumstances are changing and who knows what's next?

Thanks for taking time to read my rather long post and I appreciate in anticipation your kind replies.

Wooster

[Lisa2009]

Usually redundancy money would be used to fund your cost of living until further employment can be found. After that, the rest would be treated as a windfall and need to be handed over for the benefit of your creditors.

The forum can not in any way condone "hiding it under the mattress"

[kallis3]

You could always use some of it to offer a full and final to your creditors, but other than that Lisa is right.

You can fund your normal outgoings for a few months whilst you seek further employment and then the rest will have to be handed over.

Your IVA will continue on until either the 6 years is up or you pay back 100p in the pound plus fees.

[PELDER]

If I were you Wooster I would try to remain employed right where you are as it's obviously a good well paid job because the redundancy money would go West in no time when you are out of work, and you may not get another job as good as the one you have now! If you have to take your redundancy I would go for option i)

[cul8tr]

Hi Wooster,

I was made redundant a few months ago without any redundancy package - I have struggled to gain employment as many organizations have undertaken financial checks and as a result, had a number of offers withdrawn due to the fact I am in an IVA - even though at the time I had only 6 months remaining of the IVA. So please consider that too. Gaining employment may not be as easy as expected.

I certainly underestimated how much I would need just to survive (basic outgoings, bills etc) and if it wasn't for the support of friends and family I would by in dire straits....

There are many options available to you, do what is right but whatever your choice is, keep your IP informed,