I wonder if you can help? I've just been made redundant at the end of last year, and then informed by the company that looks after our IVA, that the payment I have received is classed as "windfall".
Could you tell me if this is the case? We knew that there was a chance that redundancy might happen and so informed them back in November, no mention of "windfall" then. They are now asking for 50%, and as I have not yet got another job this would leave us quite a tight position.
What advice can you give us
Your redundancy should firstly be used to cover your lost income, before being classed as a windfall - but of course in the meantime IVA monthly contributions should be maintained.
How much did you receive and how much was your usual take home pay.
In reality you should hopefully get another job as soon as possible. Use the redundancy money to fund your monthly outgoings - as and when you are in a new job the balance of such redundancy monies must be paid into your IVA
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Seems to be a bit of confusion at your IVA company because windfalls are paid in full into the IVA whereas only 50% of bonuses are captured. Regardless, as Melanie and David have said, redundancy is neither a windfall nor a bonus unless and until you find another job.
I accept Michael that Redundancy is not a bonus but I believe it is a windfall - as enunciated in other postings on this forum- however both Melanie and I adopt a pragmatic approach which we hope other practitioners do as well. In any event will discuss at next Standing Committee meeting this week.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
If you are waiting to find alternative employment, the redundany money you have received should be used to fund your household bills, plus maintaining your payments to the IVA.
Any surplus funds left once a new job is found, can be classed as a windfall and paid into the IVA for the benefit of your creditors.
The roof above your head and bills must be paid. If you have the funds to do this, you must retain it for that purpose.
