www.iva.co.uk

Hello all,
I'am truly confused now.
To recap, I was made redundant at the end of July and and have now just about got my head around it all so have now informed DFD of the fact.
Perhaps a little sympathy from them may have helped but I was quite shocked to be informed off the following.
Redundancy money = xxxx pounds.
This at present expenditure will last xx months.
If a new job is secured before the money runs out then any remaining must be handed over to then as a windfall payment!!!!!!
Bad enough that I lose my job but they seem determined to take all my pay off money one way or another.
I thought that redundancy payments could not be classed as a windfall.
Am I right or them?

Unfortunately, I think they are right. Your redundancy money is to be used to live on until you find employment. If, for example, you walk straight into a job then you would have to hand the money over, I suppose it's the same if you have any left over. I may be wrong though so wait for more answers. X

hi getting there

I agree with Viki, this is how I would approach a redundancy payment. DFD are just doing their job in ensuring creditors get the maximum return. If they didnt they would be open for critism from the creditors and their regulators.

I see,
But I'am sure that I asked the same question when I was first aware that this was going to happen and was informed by the forum that redundancy could not be classed as a windfall. I hope this is the case as after five very long years (6 yr IVA) things are in serious need of replacing such as the car etc.
This really is one worry I could do without at the moment as future job prospects are not looking any too good.
It looks like being between a rock and a hard place,
a continue payments till the money runs out followed by bankruptcy and lose everything paid in so far or
b Find another job and hand over the lot.
I'am I being unreasonable in wishing to be able to keep this after so long with being without?

It has to be fair to treat your redundancy payment in this manner. You would not have been informed by a professional expert on the forum that the redundancy money was not a windfall in any case. But your redundancy money is first and foremost there to supplement your loss of income until your find employment - and that is now number one priority.

Once you have found employment, it would be unreasonable to want to keep the surplus money - given that when you entered into the IVA you accepted the terms and conditions.

Its a bit of a swift kick between the legs but its the same with big pay rises,or lottery wins,you have to remember that you are in an IVA to pay back YOUR debts!!!

Good luck finding a job....




the day after your redundancy money runs out!!!

Hi Melanie,
Not trying to be funny but your reply to my earlier post
The money paid to you is for compensation for loss of office, so it is definately not a windfall.
Or have I misread that somehow.

I am sure that I would have qualified that comment by going on to say that if you did find another job before the money was absorbed then the balance would be payable into the IVA. If I did not then I should have.

If you are in year 5 of a 6 year IVA and you come to the end of your money before the end of the IVA I am sure DFD would discuss the possibility of agreeing to ask creditors to issue a certificate of due completion provided all other obligations have been met. This means that even though you have not quite done what you said you would you have done most of it and it seems fair that the IVA be deemed succesfully completed but as in most things in an IVA it will be for creditors to agree this.

Apologies if I seem to be on a bit of a rant it's just the realization that in the light of things nothing appears to be getting any better.
But no, you did not mention anything regarding the surplus.
I guess that I thought on the downside I have lost my job but at least I have some cash to hand...........boy it appears that I got that one wrong.
Once again sorry if my posts sounded a bit abrasive.

If you want me to look into the response I gave you then please send me the specific post so I can read through it to determine the context of my answer to you. And please bear in mind that advice provided on the forum is very general rather than specific to your particular issue. You should always consult your own IP who has detailed knowledge of your case.

getting there, I really hope that you find employment soon and you can put this all behind you. Good luck. X

But you are no worse off getting there,you can keep your money until you find a new job,that surely must be your number 1 priority.

Hi
You stated that you had enough redundancy to last for three months and his was Melanies reply

"The money paid to you is for compensation for loss of office, so it is definately not a windfall. This will enable to you live comfortably for the next three months even if you do not find work in the meantime, and you will be able to pay your IVA payments during this time"

Seems the correct answer to me
Regards

Thanks Andy,
I fully understand that the 3 months money is for notice and that all bills will have to be paid for this period, i.e IVA, rent, poll tax etc as this money is in effect salary earned.
It was the redundancy element that i'am confused about as I did not think that this constituted as a windfall.