www.iva.co.uk

Morning all,

Am currently 31 months into my IVA and apart from the odd glitch here and there (most notably IP change from Accuma to Grant Thornton) its run as smoothly as these thing can. Unfortunately it appears that my department are no longer required for the project we are on and the likelihood is that i will lose my job. This isn't guaranteed but it is the most probable outcome.

There is on the table the possibility of a lump sum paid leaver amount of 28k available. Now i can take this as one lump sum or have it paid in 3 installments of 10k, 10k & 8k over the next 3 years. Now I have 29 months left @ £500 per month so still owe about 14.5k on the terms of my agreement.

I know individual cases are different but before I investigate further what are the chances of this being accepted if I transferred the first payment of 10k as a full and final payment. Alternatively if I take the full 28k package would it be likely that creditors would allow me to repay the 14.5k off as a lump sum given that i will have no further guaranateed income or means thereafter to pay monthly sums towards my IVA.

Any help and advice on this would be appreciated as I have until,the end of next week to accept the payment offer.

Hi Lapdog,

I have no idea about this at all, but I'll bump it back up for the professionals.

Hi Lapdog,
Given that you have a very tight timescale it is important you speak to your IP. The redundancy is effectively a windfall irrespective of when it becomes payable and you must inform your IP when you become aware of the windfall.

I think your offer sounds reasonable and would allow you to meet living expenses for 6 months. Hopefully creditors will see it that way and you can move on. If at all possible do not agree to anything with your employer until the variation has been approved by creditors.

How bizarre - putting the IVA aside, why would anyone want to risk not getting their full redundancy package from their employers when they leave? Or am I missing something here?

An offer of money from your package, which would leave you with enough money to meet your ongoing living expesense for say one year, would appear to be a reasonable compromise and does have the benefit of bringing an early conclusion to the IVA for you and your creditors.

Thank you for the responses guys.

Just to clarify,I won't be losing my job as such but will be put into a re-deployee scheme within the company which will be at a base salary a fair chunk less than I'm on now. Having spoken to people who have been in this re-deployee scheme it's not something that people can last in for much longer than 3 months.

So the paid leaver is an alternative option which I would consider if it meant as you say I could finalise the IVA and still have enough money to buy me some time whilst looking for work in the current unsettled job market.