www.iva.co.uk

Once a payment has been accepted by the IVA company in 'full and final settlement' (at an agreed dividend of 44p in the £)can more money be taken if a redundancy payment is received during the 'wind-down' period?

I believe that if you've not had your completion letter then you would have to inform the IP of the redundancy. It may well be classed as a windfall.

So does 'full and final settlement' mean absolutely nothing in law? The IP was aware that I was due to be made redundant before family offered to pay the settlement. We wouldn't have gone ahead with it, if we knew that they could still take more.

It does mean what it says, unfortunately the IVA is not complete until you receive the completion letter and are still subject to the windfall clause.

It will very much depend on the wording that the IP has used when putting the offer to creditors. If they use the words "in full and final settlement" then I cannot see how any other assets (i.e. an inheritance) can be included. At Varden Nuttall we would not ask the client to pay any additional funds in providing the offer had been accepted.

One point to clarify, its not the IP who accepts the offer. it is the creditors. The IP puts the offer forward to the creditors on your behalf. If the offer has not yet been accepted by the creditors then the IP has an obligation to inform creditors of the windfall and it is likely that creditors would expect this in addition to any lump sum.

I stand corrected Gareth - apologies.

Thanks Gareth. The offer has been accepted by the creditors in a meeting at the start of the month. Once the creditors accepted , the payment was made. The wording was definitely 'full and final settlement'