www.iva.co.uk

Hi,

Advice needed please. My OH employer is closing there office an moving her 50miles away.
We are 10mths into IVA
Her company has 2 packages for employees who will be relocating which are:
Relocation package all costs covered as well any difference for like for like homes, trouble with this is we are unlikely to get a mortgage.

Travel package approx £30000 in a lump sum to cover travelling for 5 yrs.
My question is will we be able to have an amount of £30000 in her bank account without the iva taking it.
It's not a windfall, or inheritance.

Regards
Zero34

Welcome Zero, firstly, this seems really generous. In my view I would think your IP would look at this like 'a 5 year advance of subsistance and travelling costs'. Once the taxable element is removed, their would still be scope for profit within it. I doubt your IP would sanction you having these sorts of funds swlling around in your bank account. It is highly likely, they would want a large chunk of this and then you would need to complete a new I&E every year to update the travelling expenses. Then your new payments would reflect this.

Thanks for your reply

I feel the same way myself in that I don't feel our IVA company will allow her to keep that money in her account.
I disagree that there is profit to be made in it, the cost has been calculated accurately and has also been taxed at 40%, the final figure is approx £30000. This is how much it costs to travel to her new place of work for 5 yrs.
Fuel is expensive, once the money runs thats when the problems start.

But I have been told all that is required is a letter from her employer stating its her travel costs for 5yrs and then it can't be touched. Anybody else believe this to be the case???

Your own IP will be able to give specific case advice. You are in a very difficult position and it will need careful thinking and negotiation with your IP

I agree lulu. This is a tricky one. Of course all IPs have different ways and criteria and, having explained your situation to them, they may well entertain and understand the figures you state. Nevertheless, scope for profit, notwithstanding, I just don't think they would authorise it. Also, if £30k was languishing in your account, whilst in a very restricted regime of an IVA, your own strict budgeting skills would need to be ruthlessly adhered to.

What would be expected to happen regarding the money if she decided to change jobs or went on maternity leave?

She will have to pay the money back if she leaves, not sure about mat leave

Is she in an IVA as well?

Yes, MelanieGiles we both are.

I would think they would probably capture the 30k as a windfall and then adjust your fuel expenditure accordingly to take into account the increased costs of travelling to her new place of work, I guess the mortgage argument would be that you would be able to rent a property near the new place of work. But I am not an expert and not your ip

Is it possbible that the money could be paid into different bank account, say a parent or sibling? That way they relative could open a brand new account in their name, but give access via cash/debit card to your other half. If worked properly, the account would be in the relatives name only and they wouldn't need to touch the funds at all. Worth a thought I guess.

Thanks all for your thoughts, but can't see how they could capture it as a windfull as that is not what it is.
Whilst we have scrupulously kept to the terms of the IVA it would seem unfair for them to make up the rules just to take hold of a substantial amount of amount of money
After all this money is to get her to work for 5 years. If she cant work she/we cant pay the iva, and thats something we really want to see through

Rather than a lump sum, could the employer, having made the award, release funds on a monthly basis, in arrears, so it is viewed more easily as what it is ..... repayment of travel expenses already paid out ?

I think Foggy's suggestions seems practical when in an IVA. Might be worth talking to employer in first instance and then taking advice from your IP.

I would discuss the options the employer has on offer with your IP ( who are you with?).

Of course, if it gets put to the creditors there is a third option --- give up the job and fail the IVA --- the creditors stand to get less that way. Naturally this all depends upon your whole set of circumstances and shouldn't be taken lightly.

Out of curiosity, how much was the total debt ?