www.iva.co.uk

Hi,

I am just under 1 year into my IVA, paying £131.00 per month. There is a high likelyhood that I will be made redundant towards the end of this year or the beginning of next. I think that my full redundancy amount will be roughly £13,000.00.

So my question: Is a final settlement based on the amount payable to the IVA, or to the full original debt?

Also I'm aware that my redundancy payment would be treated as a windfall. So if I got more than the amount to be paid into the IVA, would they still take all of it, to go towards the full amount originally owed.

My thinking is, that I may ask my Dad if he would give me the money to pay off my IVA before I am actually made redundant, as presumably the settlement figure would be the full amount payable over the 5 years of the IVA?

Should probably also mention that I do not have a mortgage & rent my home.

Any advice gratefully appreciated.

Thanks

Hi and welcome.

Sorry to hear that you may be losing your job and hope you can get another one soon.

You are usually entitled to keep up to six months worth of your redundancy to fund your normal expenses while you look for another job. Anything left after that would need to be paid across.

With a full and final you should offer as close to the original dividend as possible.

You will always owe the full amount to your creditors until the IVA is completed.

You can try offering a full and final now if your Dad will give you the money. Make sure that your IP is aware that this money is only available for a full and final offer.

creditors I guess will want there money soon as and if offering a F&F to the original divi then you should think it's a done deal. Just not sure what IP's think about them as they loose a chunk of their fee!

sponge wrote:

creditors I guess will want there money soon as and if offering a F&F to the original divi then you should think it's a done deal. Just not sure what IP's think about them as they loose a chunk of their fee!

Not in every case, sponge. My IP gets a %age, so if the full dividend is paid early in one lump they get their money in full, in one lump too. They also benefit by not having to do 5 years work for it!

They also charged a pro rata monthly fee over five years. Maybe they have artisic licence to shape the proposal to suit each practice, I guess!

Funnily enough it was an alteration made by the creditors. My proposal gave a set sum spread over the 5 years and the creditors altered it to a percentage. Because I have been able to overpay during this first year they have already had half of what they originally asked for in their set fee .... so if I can keep overpaying they will actually get more than they asked for !!!

The IP is under an obligation to put forward a variation to the creditors as far as I am aware. I doubt they shape it to suit themselves, it will be geared towards the debtor.

Thanks for all of your advice. Looks like I need to get the F & F moving as soon as poss. I will phone my IP this morning. My IVA is through the Consumer Credit Counciling Service, so I do feel that so far they have been as help ful as possible.

Thanks

Fingers crossed - let us know how you get on.