Sorry to hear about your bad news. The redundancy payment can be used to fund your outgoings until you find another job - however once you do yes the remainder would be classed as a windfall and have to be handed over.
Looks like I am to be made redundant over the next week or two. As I am currently in a IVA will the redundancy payment be taken as a windfall ?
Regards and thanks
Hi Liam,
This happened to me albeit without a payout (sobs..) Make sure you tell your IP about your redundancy as you may, depdending on your circumstances, need a payment break if you cant get work soonest..good luck with your quest for a new job.
If you find another job paying less than you currently earn creditors may accept the balance of your redundancy as full and final settlement. You will need time to find another job so speak to your IP and they can advise further depending on how much you will get and whether you find new employment.
You will need to refer to the terms of your proposal to determine whether or not a redundancy payment constitutes a windfall and is should therefore be paid into the arrangement for the benefit of the creditors.
However, the redundancy payment is compensation for the loss of employment and therefore you may be able to utilise the proceeds to continue to pay living expenses and maintain contributions to the arrangement, whilst new employment is obtained thereby allowing the IVA to continue. You would need to disclose details of the anticipated redundancy payment to you supervisor so that he can determine an appropriate allowance and timescale for you to find new employment. Any difference between the redundancy payment and the agreed allowance are likely to be paid into the arrangement. Should employment be obtained within the timescale agreed with the supervisor the allowance would cease and thepayment into the arrangement adjusted accordingly.
Please note that there is no general rule for redundancy and a supervisor would look at each case on its own merit.
