Voluntary Redundancy

[Telnix]

Okay, update - my offer was rejected, and they are claiming £18,000 of my £36,000 payout. Despite the fact that I have paid back £7,000 of the £21,000 already. Something to do with fees and interest. None of this was mentioned to me while I was in discussion with my IVA administrators, and when I questioned how I still had to pay £4,000 more than I owed, it got very complicated.

So, be warned - this only came out AFTER I accepted my redundancy terms, now it's too late to change my mind.

Gutted. All dreams of re-training out of the window as I now don't have enough to live on while I do it. You want fries with that?

[kallis3]

Sorry your offer was rejected, but unfortunately creditors will always want to see as much back as they can and if it means that you end up paying back the full amount plus the fees and interest, that is what they will insist on.

The fees should have been mentioned at the start of your IVA and the £4000 will be the fees. The creditors won't be getting anymore.

I'm sorry you won't be able to retrain either.

[Telnix]

Thanks. Ah well, at least my conscience is going to be clear, knowing I've paid back everyone absolutely everything I owe! I'm starting to feel more positive about the whole crappy situation now, and I've well and truly learned my lesson! Wouldn't have taken the redundancy under these terms, had I known, but now I have - at least I get a fresh start, debt free and with a few months living expenses til I get something new.

[kallis3]

I hope that you find something soon Telnix.

[Cybus]

I wonder if anybody has actually considered what might happen to any payment protection (I was thinking of mortgages in particular ) in the redundancy situation. You would also be wise to consider what happens to that in the scenarios of both voluntary and compulsory redundancy.

I believe there are some payment protection policies that do not payout in the event that voluntary redundancy is taken.

So there may be other factors to consider ...

Whilst, initially, you are financially better off, with your larger payout, will that payout allow you to continue to pay the mortgage and carry on a basic standard of living until you find yourself alternative employment?

If not then compulsory redundancy might be a better option in the longer term, given the current job market. At least you would have some comfort as far as your mortgage payments are concerned.

I hadn't noticed this mentioned in the thread and thought it might be useful to bring up.

[Adam Davies]

Hi
That is a very good point that Cybus makes and Telnix posts make interesting reading.
I have a feeling that success,or not, of a F&F using redundancy comes down to the way that your IP puts the variation across to the creditors.
Regards

[MelanieGiles]

I am afraid that I am not suprised to see this result - and personally I feel that you took an incredible gamble in accepting the settlement which is a windfall, in the expectation that creditors would leave you with a substantial share of money that they technically own.

One of my clients is in the same boat at the moment, and does not understand why I will not put an offer of short settlement forward from an anticipated voluntary redundancy settlement, without canvassing creditors views before the money is accepted.

I hope he actually reads this post as confirmation of creditor attitude in this regard, but feel sorry for you that you were encouraged to put the offer forward in the first place.

[Telnix]

I admit it was a huge gamble, and time was too short to allow the 28 days required. But when I discussed it with my administrators and explained that I had to made a decision quickly, I was told several times that there was a very good chance that a) the settlement offer would be accepted, or b) that I continue to make monthly contributions for the duration of my IVA, until such time as I found further employment, would be a reasonable alternative. I did point out that I didn't plan on running out and buying a new car, but that I just wanted enough money to live on while I sought re-training or employment, but it apparently cut no ice. Ah well, c'est la vie. Lesson learned.

[MelanieGiles]

I think the problem is that the redundancy money belongs to the creditors by right of the windfall provision, so in their eyes they are being generous in allowing you to keep half of it. Not what you want to hear I know, but I just want other posters who may be considering this to understand that this is in no way guaranteed to be successful.

[David Mond]

Sorry to hear the news. But it is not surprising. Posters getting into a position of knowing that they could get a redundancy payment need to get their IP to phrase it in such a way that if they don't accept the F&F you probably won't take the redundancy. It is a skill and needs plenty of discussion with your IP (who could sound out the major creditors in advance). Salutory lesson though. Bad luck.

[Telnix]

I agree, completely. I don't understand though, why the continuing contributions (with a proviso that, once I get a job, I pay half the remainder of the windfall into my IVA) was dismissed. Well, it's been an experience - not one I'd care to repeat, but I would like to say it's taught me an awful lot about budgeting, and made me very careful about everything I spend. Without wishing to go into the reasons for the original debt it was not entirely down to me, I've been carrying my ex husband's university fees and household debt etc in there, but this has been such a valuable lesson! Thanks, everyone, for your input and I hope never to have to post here again (nothing personal, you understand!)

[kallis3]

[:D]

I wish you well for the future Telnix, I hope it all works out for you.