my variation meeting has been rejected by grant thornton iva watch representing northern rock and deferred for a week.
it was proposed that mine and my husbands iva be extended for 2 years back to 5 years at a lower amount. grant thornton rejected this and wants the full amount to be paid with arrears.
my iva company has been letting us pay at a reduced rate to 225 pounds for my husbands iva and mine jointly for the last year.
It was 750 two years ago, but my husbands working hours were cut by his company.
Now on top of this he is being offered severance pay of 8k. The meeting has been deferred for a week whilst our iva company tries to get the other creditors who didnt vote to vote in favour and overrule northern rock and grant thornton.
We have just spoken to our iva company and they said as it is a low amount my husband can keep the money to live on and if he gains employment he will have to pay a lump sum.
The iva company said he can offer it in final and full settlemeent next week if he wants but doesnt have to.
My worries are, what is the likelihood of this being accepted and if it is accepted what is the likelihood of my reduced iva payment of 125 from 430 being accepted as we will be absolutley broke at this point.
if the reduced amounts are not accepted next week or the full and final offer is not accepted along with a reduced payment for myself we will have to apply for our own bankruptcy.
thanks for any help
Thanks for your support.
really fed up as we both had debts from our previous marriages ,then we lost our business and we were in a repayment plans from 2006 to 2008, then on to an iva in 2008.
We have just had bad luck with job cuts. Now severance pay will have to be accepted as job redundancies are likely and if we hold out the payout may be less.
lost the house in 2009 just as our baby was born and we are now in rented accomodation with several children.
Not looking forward to the receiver coming into the house so really have put our best offer forward. Nothing else to offer. grant thornton has had good reviews from some people but in our case they seem to be working for the creditors on "iva watch " thanks again for your support.
Hi
Not sure how you are expected to keep your IVA running at full payment level if your husbands income has reduced ?
Hopefully yout IP can convince GT to reconsider or other creditors to out vote them.
As you have no assets bankruptcy may be a welcome relief, in bankruptcy no one will come to your house so don't worry about that.
Good luck
Regards
Your husband's redundancy money is a windfall in the IVA, which creditors are already entitled to, so I cannot see how you will persuade creditors to accept something they are rightly entitled to by way of a full and final settlement - although monies should be set aside to meet your husband's lost income for a maximum six month period (less six months worth of IVA contributions which should be paid out of the funds into the IVA).
Grant Thornton are very sensible and fair reviewers of proposals, so I would be suprised if they would turn down a good offer without good reason.
sorry melanie i do not agree, other experts have advised me on another site that i can offer it in full and final settlement. also payplan have told us that if the variation is accepted it can be kept to live on and if my husband gets another job then they will expect a lump sum. it is not a windfall as he has not taken the offer of severance pay yet but will do if the creditors accept it in full settlement . anyhow if it is rejected we are filling for our own bankruptcy as advised above by andy and also payplan. thanks anyway
I can categorically tell you that redundancy money is a windfall, and would be very interested to know if the experts on the other site are actually qualified insolvency practitioners, because if they are giving out that sort of advice I would be very concerned.
Most IPs will allow a reasonable retention of up to six months (less the value of the IVA payments to be paid over thaqt period) until a new job is found.
well in my husbands case 7600 pounds is less than months wages anyway. if you search this site plenty of people have had their severance pay accepted as full and final offer as if the creditors dont accept people dont take severance pay. my husband is not going to take severance pay for nothing. may as well stay in work if it is rejected. anyway like i said advice has been given by other experts on this site. we are just following this advice and the advice of others. it is not a windfall if it one does not accept the severance pay offered and stays in work instead.
Karen - I know it is frustrating, but the advice given by Melanie on this site is always accurate and she is a very reliable source which we all rely on to help us.
Having been on this site for several years now,I can only ever recall seeing posts that say redundancy payments are paid across less six months IVA payments - it is a windfall and your creditors are entitled to the money.
I hope to get the end result you need, but I also hope that the advice you are being given away from this site is correct and does not lead you down the incorrect route ! Best of luck
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
sorry, it really doesnt matter anyway as like i said no money has been received. Also payplan our iva company said he can keep it and does not have to offer it to creditors as it is less than his usual 6 month wages. Surely you cannot argue with a supervisor from payplans advice? thanks anyway lulu ,but lets just agree to disagree as i am following the advice of my superviser from payplan and andy above and filing for bankruptcy
Hi
I think there is some confusion here
If you RECEIVE redundancy it is a windfall and it has to be paid in less an amount equal to six months net pay, or the balance once a new job has been found if sooner than six months.
If there is a voluntary redundancy package that can be taken then YES you can offer this as a full and final and accept the redundancy only if the full and final is accepted by your creditors
Hope this all makes sense
hi Andy, exactly what I was saying. I couldnt get through to yourselves for advice/help with the bankruptcy issue on your site. will try again tomorrow.
thanks for that clear answer. i have emailed you back one more question. will visit your site when it is open in the week for guidance during the process. thanks for all, great help in this distressing time.
