WINDFALL OR NOT

[pm5]

The company I worked for a few years ago went bust, now i am hearing all former workers may be recieving about £5k in compensation.
How will this affect my IVA , will i have to hand over the lot to them or just half.
I will be gutted if i had to hand over the lot......

[MelanieGiles]

If the company went bust a few years ago, why do you think that you are entitled to any money now? Is is that the liquidators are about to declare a dividend? If so, then you will have to declare the full amount as a windfall, but if your redundancy claims were initially paid by the Department of Employment, you will not be entitled to any money in any case, as they will need to be paid back first.

[pm5]

When the company went bust some assets that the company owned was sold & put into a trust fund for an eventual distribution to former employees, however due to some legal wrangle this is on hold, but according to our local newspaper eventual payments to former employees could be as much as £5k

[MelanieGiles]

How bizarre! I cannot see how that could happen, unless this has something to do with your pension rights. Could you elaborate a little more - you did not used to work for ASW in South Wales per chance?

[indebtforever]

how long have you been in your iva?

[pm5]

It does sound bizzare i agree Mel cuz surely the companies creditors should get any money that is made through assett selling.
No i worked for MG Rover & yes I did have a pension there too.

[MelanieGiles]

OK - I understand that the government allowed a special compensation package for employees of MG Rover so it now makes sense to me. Am afraid it is still a windfall in your case though.

[luluj]

How long have you left on your IVA ? Maybe the payment won't be sorted until after this has concluded in which case you can smile - otherwise look at it as a chance to pay back more to your creditors !

[pm5]

1 year into a six year agreement, never mind though, im thinking long term i will be better off.