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Posted: Wed Mar 04, 2009 7:04 pm
by mark_
My wife and I have been paying £350 pounds a month into a joint IVA for 18 months, and have to raise another £12000 in equity at the end of the 5 years. I am about to be offered between 25- 30 thousand voluntary redundancy. I intend to start a business as alternative employment. I would need a large part of the redundancy money for stock. Would there be any way I can keep this money, as long as I can prove I am using it for my business, and continue to pay the £350 a month ? I really want to take the money but if I have to hand it all over I may as well stop in my job (which is very unstable at the moment- Royal mail).
Posted: Wed Mar 04, 2009 9:35 pm
by MelanieGiles
Your redundancy money, whilst it is paid to you as compensation for loss of office, is actually a windfall under the voluntary arrangement and will need to be declared as such.
Having said that, if the new business is being set up to provide you with a replacement income, which can ensure the future of the IVA, then you may be able to justify the retention of a working capital sum to establish your business with.
Talk to your own IP about this to gauge their reaction.
Posted: Thu Mar 05, 2009 3:30 am
by David Mond
This is a very difficult situation and different IP's would either be prepared to do a compromise with you whilst others would not.
Your IVA refers to windfalls which a redundancy payment is. All windfalls have to be paid into your IVA to the extent to pay off creditors - but no more than 100p in the pound.
You will need to discuss the pros and cons with your supervisor on your suggestion and see what he/she is prepared to do. In the end he/she might have to request permission of creditors as the final arbiter.
Posted: Thu Mar 05, 2009 8:03 am
by MelanieGiles
David
You were telling me recently that the Standing Committee were going to provide some direction on redundancy payments. Was the issue of whether a lump sum could be offered in full and final settlement actually discussed? If not, it would be great to get some clarification on this point.