I am in a tricky situation and would like some feedback as to what people think..
I am in an IVA and soon to complete in oct 2012. I am currently 29 weeks pregnanct and was made redundant April 2011. I have recieved redundancy pay and notice pay which I have used to live on, however I have been told by my advisor today that they see this as a windfall and I have to pay it back. I have paid in an addtional set of monies to over the value of 7,000 so am unsure where I stand legally. Please advise
Congratulations on the pregnancy and hope it all goes smoothly.
As regards your redundancy, you are usually able to keep up to six months payments to help towards your normal payments.
Which company are you with?
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi. Technically redundancy payment is a windfall, and, as such, payable into the IVA. Most IP's will allow you to retain the equivalent of 6 months pay to live off (and keep paying the normal IVA payments from), while you seek other work ( this, of course, is complicated by the pregnancy).
Hopefully an expert will be along soon with more usful advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Legally the IP is on solid ground as they are implementing the iva as per it's terms - redundancy pay is a windfall and is due to the creditors unless the IP agrees otherwise. As you owe the full amount of your debts plus fees this additional payment doesn't have any bearing. The most sensible solution is to ask your IP for retrospective permission to retain six months salary (which is pretty standard) and then discuss how you'll tackle payments when you have the baby. Most importantly though - CONGRATULAIONS!!
These days, things like this are covered off in the IVA proposals - if the IP concerned uses the IP protocol which most of us do. As your predates all of this good stuff, your IP may need to seek the views of creditors as to whether you can retain your redundancy money - but common sense would say that you should and in line with current bankruptcy best practice, six months salary equivalent would be a sensible sum to retain.
Thanks all for your feeedback, i am with freeman jones. I am hoping that I will get to keep the monies to live on as I have spent one month of it on bills and housekeeping so far as have only just secured work. The redundancy payment was only 1 mths salary and one months bonus plus my sales commission for march 11.
