Can I keep refund from Payday ? I will be out of work for a couple of months.

Get expert opinion. This is the place for new questions to be posted.
3 posts Page 1 of 1
User avatar
Posts: 1
by karen788 » Thu Mar 16, 2017 9:41 am

I am being made redundant on March 30th 2017. I have been offered an alternative role with an associated company so will not be entitled to redundancy pay. The new company have stated the background checks will take up to 8 weeks so will not receive a job offer start date until 1st June. This means I will have no income to live on for April and May. I am in an iva and have been informed by the financial ombudsman service I am due a refund from payday lender of 3400.00. can i keep this?
User avatar
Michael Peoples
Industry Expert
Posts: 15189
by Michael Peoples » Thu Mar 16, 2017 10:09 am
The PPI refund would likely be an asset of the IVA so paid to your IP. They may allow a payment break while your employment situation is resolved but it would require approval from creditors for you to retain any of the funds.
User avatar
Forum Expert
Posts: 24448
by Foggy » Thu Mar 16, 2017 12:07 pm
As Michael says, the refund will be payable into the IVA and the IP would need creditor approval for you to be allowed to keep any (which might not be forthcoming. The easier option would be to agree a few months payment break -- which will be added on at the end as your IP,if willing, can agree that off his own back, assuming your agreement grants him the usual discretion to do so,
3 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 6 guests