I have been in my IVA for 18 months. I could possibly take Voluntary redundancy and am being offered approximately £29000. If I were to accept this, would this be considered as a 'windfall' ? I would need this money to live on while I look for work elsewhere.
Last edited by MARLINA on Thu Feb 05, 2009 7:05 am, edited 1 time in total.
It would. The most that an IP would allow you to keep would be up to 6 months net take home pay. Why don't you suggest to your Supervisor (IP) that you are considering taking voluntary redundancy and suggest a lump some into your IVA as a F&F. This should be around 10%-15% off the estimated amount you would have paid in over its life. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
It's a full and final settlement - you make just the one rather large payment to finish off your IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
David, you say the most an IP would allow you to keep is 6 months money - surely it would depend on how long it took to get a job? With the way things are at the moment I can imagine some people will be out of work for longer than 6 months.
You could propose to creditors that you accept voluntary redundancy only if they accept a set amount as full and final. I have had clients retain monies to buy a taxi or a small chip van so they would have an income post redundancy. If creditors do not allow you to accept voluntary redundancy there is a danger that compulsory will follow and ultimately you could have a failed IVA and nil return.
Skippy13 - I accept that today it could take longer, but in reality any redundancy should be paid in full into ones IVA. A lot of IP's will allow some flexibility, Melanie and ourselves are examples. However it is not impossible to find some other work as there are always some jobs available.
Last edited by David Mond on Sat Feb 07, 2009 8:46 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I accept that there are jobs out there, but to maintain your IVA payments you need to find a job with pretty much the same salary as the one you lost - and I wouldn't think that is easy these days.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
But even if taking a reduced salary (a) gets money in and (b) enables a valid variation to be proposed. This is also probably to be acceptable to creditors in this climate.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I agree with Jan here - there might be jobs out there, but it's not always easy to get them. When Dave lost his job he applied for a job in Tesco, but didn't get it as he was over qualified. With the way things are at the moment companies can be more choosy than ever.
My job is a very specialised job, and the salary is a good one. If I was to lose it, there is no way that I would get a job which pays half what I get at the moment, particularly with the qualifications I have (don't think too many firms look for a History O level!)
I would have no option but to go bankrupt once any redundancy ran out as my IVA contributions would be down to virtually nothing.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for all the info guys...If and when I were to take this £29000, would I be allowed to use , say, £5000 to start my own business (i'm thinking of a full time ebay business ) I would need the money for stock etc. I could then maybe use the rest as a 'F&F' ?
I am unlikely to be offered this redundancy money again, and I need to apply for it by feb 25th (Its Royal Mail)...If I were made redundant after this I would probably get much much less, and there are rumours this very day in the newspapers that this is about to happen ?
I'd appreciate your thoughts ?
By the way...as regards finding another job...i'm 44 have 7 o levels and 2 a levels but have worked at Royal Mail as a postman for most of my working life...and I have to say ...would I employ me ? Probably not !
Last edited by MARLINA on Sun Feb 08, 2009 7:36 am, edited 1 time in total.
Good question! I am afraid I don't know the answer, but I'm sure one of the IP's will be on later to advise you.
I personally think it's a good idea.
You're way more re-employable than I am!!!!!!1[:D]
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This is a different matter in wanting to keep part of your prospective redundancy payment to start a business. If you were to offer £24k in full and final what would that represent (together wityh what you have already paid into your IVA) as a dividend to creditors compared to what was originally on offer?
Last edited by David Mond on Mon Feb 09, 2009 7:43 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
