Best course of action?

[Beth2022]

Hi all,

I am currently in an IVA with Stepchange which is due to finish in February 2022 but I’ve just been made redundant.
My redundancy pay is only 6 weeks salary (statutory amount) so nothing to pay into my IVA.
I’ve been looking for work but haven’t found any as of yet- I’m a lone parent with 2 young kids so evenings and weekends aren’t possible for me to work which seems to rule me out of an awful lot of jobs!
My annual review is at the start of June, I’m really worried that my new budget won’t be sufficient on paper for my IVA to continue. Obviously, when I’m so close to the end I don’t want it to fail now.
I currently pay £169 a month, so £1690 to go, my redundancy pay was £1300.
Am I best off offering that as a full and final payment to avoid the risk of the IVA failing?
I’ve already taken the 6 month break in payments back in 2018 after my exhusband assaulted me and then took me to court for access to the children. I had to pay towards my legal aid costs.

I emailed Stepchange to notify them of me being made redundant but they haven’t come back to me so I am planning on calling them tomorrow, I just wanted some opinions from others who might have been in the same boat first

Thanks

[Foggy]

You would be unwise to offer the £1300 as Job Centre / Universal Credit etc. will assume you have this to live on for a few weeks and not give you benefits during this time --- they will not accept paying off debts as a legitimate use of the money. This could leave you in dire straits.

Obviously see what StepChange have to say, but one possibility is asking for a Full and Final based on payments made to date -- basically asking the creditors to 'call it quits' and close early. Of course a lot will depend on what you can end up paying monthly --- a reduced payment might be acceptable or they might make it more acceptable by adding, say, a year on the term to make up for the reduction.

[Beth2022]

Ok thanks, are they more likely to accept that if I’ve already paid in more than was initially agreed?
My monthly payments have increased over the years so I’m fairly certain I have paid in more than the minimum agreed already.

[Foggy]

Ok thanks, are they more likely to accept that if I’ve already paid in more than was initially agreed?
My monthly payments have increased over the years so I’m fairly certain I have paid in more than the minimum agreed already.

It does help, Beth. I ended my IVA halfway through on payments made to date, due to a change in circumstances making payments unaffordable. However, by that time I had already reached the originally estimated dividend, which must have helped.

[Beth2022]

That’s encouraging, thanks Foggy

[Beth2022]

Unfortunately Stepchange are not prepared to go to my creditors and ask for full and final based on what I’ve already paid- I’m about £600 over what we initially thought I’d pay.
They said that it’s the number of contributions not the amount collected that matters and creditors are currently loathe to end early because of the sheer number of people being made redundant at present- it’s too much collective debt for them to be writing off.
He said the only way they’d consider going to the creditors was if I was terminally ill or became incapacitated in some way so couldn’t find a new job.

They did suggest I take another 6 month break and add that on to my term but I really just want to get this iva done, I’ve been in debt for years thanks to my ex husband, I want it over

[kallis3]

It is up to you to insist they put the offer forward - it is down to the creditors as to whether they accept or not.

[Foggy]

StepChange are getting unusually unhelpful recently ! And he is spouting internal policy rubbish.

I would be inclined to make a formal complaint which can them be escalated to the IP's regulatory body, in this case, I believe, the IPA.

[kallis3]

I agree