IVA and redundancy? I am due to finish my IVA in Nov this year, the final income and expenditure is Oct, but in Oct i will also be made redundant, my question is... should i keep paying the monthly amounts and keep quiet as it'll be only two months of payment till completion. Please note i should be getting a redundancy package.
Firstly well done on getting so far in your IVA & Im sorry to hear about your redundancy. Im not quite sure how this will work with you being so close to the end when your redundancy comes into place.
We would not advise you to stay quiet as we would not want you to put your IVA danger so near to finishing.
A redundancy payout is classed as a windfall & should always be disclosed to your IP. Though usually your IP will allow for you to keep a percentage of it till you find suitable employment.
The best person to advise you on this will be your IP.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
I do echo the above - you should not keep quiet about this - be upfront and honest with your IP.
As ginger says, you will always owe the full amount to your creditors until the IVA is completed.
It maybe that they will allow you to retain some funds whilst you are looking for another job and let the IVA complete as normal.
It may also depend upon how much you are going to be getting with a redundancy package.
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
Thanks for the answers, lets say hypothetically speaking, that i ask my IP for a settlement figure in Sept (i should have only 3x £415 left to pay at this point as should be finishing in Nov)and I raise funds to pay of this settlement.
Will the IVA be closed as of this point??
The reason is be so guarded about this is because the job market is not exactly great at the moment, and i would prefer to keep the money to protect my house/family with these funds. I know all of this looks bad on me trying to hide things, but in my opinion i've toed the line, i've struggled for the last nearly 5yrs with this IVA to the point of nearly splitting up with my wife due to this IVA and the struggle of living on a budget with rising costs spirally out of control.
And it will be nice after having this IVA to start a new life with these funds
Last edited by L1ZARDK1NG on Fri Jul 01, 2011 10:55 am, edited 1 time in total.
How would you raise this sum ? - also you will find that if there is any chance of a lump sum - they may not close the IVA - usualy any lump of money once known about - is usually incorparated into the IVA anyway.
You may also find that by the time the creditors agree this " F+F settlement sum" the IVA would have run its normal course anyway.(the agreement is with your creditors and you Not the IVA company - who only act as an intermediate and aid the IVA running)
There is also a delay until the completetion certificate is issued - it is only after this is issued is the rest of the debt written off.
Last edited by ginger3232 on Fri Jul 01, 2011 1:44 pm, edited 1 time in total.
The trouble is the IP will have to approach the creditors and ask for their agreement to end the contract early - so you may find this takes a few months. If they agree it may only save a month or so. But the IVA is still in force until you have the completetion certificate (this can take a few months) - so if they find a issue,this may prevent the IVA completetion. (ie - Lump sum redundancy)
Is there anywhere on this website or the web. which states in detail how an IVA finishes or completes? as to be honest I don't have an understanding of this. Obviously in Sept for me will be my final INE, where i hand over wage slips and P60. If this all goes to plan, then I complete my end by completing to 60 months of payment. Then in theory I get the cert of completion. And away i go.
Or have i got this wrong??
Just spoke to my IVA company about the completion process. Once I have made my final payment, the account moves to the completions department who will check that I have fulfilled all the criteria laid down in my proposal. They will then ensure that they have received all the claims from my creditors and will chase up any who have not formally claimed. They will check the clauses relevant to mortgage equity release and lift any restrictions that are in place. They will then make the appropriate payments to all creditors who have claimed. They will then issue the completion certificate. This should all happen within a 12 week time frame subject to no hiccups.
The completion certificate wil be issued only once the IVA company has gone through the paperwork, issued remaining monies and checked to make sure there is no Windfalls of money - this is why it can take months for this to be issued - It is Only when this has happened - that the IVA will complete and the remaining money is written off.
I appreciate it is a long (boring) document - but you do need to dig out the orginal proposals - it will deal with issues individul to you.
I am not aware of any document that will list the A to Z of IVAs, apart from setting out the basic principles of them.
Last edited by ginger3232 on Fri Jul 01, 2011 2:50 pm, edited 1 time in total.
Thanks for the reply KAYKAY, now lets say for instance, you have made you final payment and are now in the care of the completions department.
You buy a lottery ticket for this weeks Euromillions and you won (good luck btw) would anybody have a claim on your winnings??
L1ZARDK1NG wrote:
Thanks for the reply KAYKAY, now lets say for instance, you have made you final payment and are now in the care of the completions department.
You buy a lottery ticket for this weeks Euromillions and you won (good luck btw) would anybody have a claim on your winnings??
Absolutely no idea..... but I guess with £130 million I wouldn't really care... sorry that was flippant.
I don't know the answer, am afraid you will have to wait for an expert to answer that one.
Ok will do, thanks for the replies Ginger3232, and to KAYKAY maybe it was silly mentioning Euromillions as that is a vast amount but hopefully you understand the point i was trying to make.
L1ZARDK1NG wrote:
Ok will do, thanks for the replies Ginger3232, and to KAYKAY maybe it was silly mentioning Euromillions as that is a vast amount but hopefully you understand the point i was trying to make.
Yes I do understand, and sorry again, but couldn't resist. Actually it is a good question, and I hope someone will be able to answer it. Would be interested to know the answer myself now, joking apart.
