Do we have to pay job redundancy money into iva, even after iva is over?

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rachel268
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by rachel268 » Mon Jan 08, 2018 4:41 pm
Hi
We've made a last iva payment in dec17 my husband has been told he's been made redundant the end of jan , he's already found a job to move onto but has been told reduncy still has to be paid into iva is this right even when the iva has finished
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Foggy
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by Foggy » Mon Jan 08, 2018 4:49 pm
rachel268 wrote:
Hi
We've made a last iva payment in dec17 my husband has been told he's been made redundant the end of jan , he's already found a job to move onto but has been told reduncy still has to be paid into iva is this right even when the iva has finished


Unfortunately the IVA hasn't finished until the completion certificate is issued. Whwether I would get anywhere is questionable, but, if it were me I would argue that the redundancy payment is work / wages related and in the period between tha last payment and the issue of the certificate you remain liable for non-income related issues ( windfalls) but not for income related issues (overtime and bonus payments). Therefore the redundancy compensation, being work /income related should not be paid over. Worth a try
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MerlinL14
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by MerlinL14 » Mon Jan 08, 2018 8:59 pm
Personally, as all your obligations have been completed and you have made your last 'obligated' payment, I would just keep quiet about the redundancy. I take it you have a letter or email from your IVA company confirming Decembers payment was the last one required?
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Foggy
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by Foggy » Tue Jan 09, 2018 8:04 am
MerlinL14 wrote:
Personally, as all your obligations have been completed and you have made your last 'obligated' payment, I would just keep quiet about the redundancy. I take it you have a letter or email from your IVA company confirming Decembers payment was the last one required?



I fear that cat might be already out of the bag !
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MerlinL14
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by MerlinL14 » Wed Jan 10, 2018 7:30 pm
Foggy wrote:
MerlinL14 wrote:
Personally, as all your obligations have been completed and you have made your last 'obligated' payment, I would just keep quiet about the redundancy. I take it you have a letter or email from your IVA company confirming Decembers payment was the last one required?



I fear that cat might be already out of the bag !


I fear you read the post far more diligently than I did first time round, and before I put pen to paper (metaphorically)... :?
ThomasDFD
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by ThomasDFD » Fri Jan 12, 2018 5:47 pm
Unfortunately, a portion of the redundancy monies would be viewed as a lump sum that is due to your creditors. Usually if a client has not managed to find work after redundancy the procedure is to agree that up to 6 months worth of wages be kept from the redundancy payment. anything over the total of 6 months wages would be paid in. With your case being at closure and your husband securing another job the usual process may not apply. If it is a large amount that your husband is entitled to it may be that it reaches a 100p dividend and there are still some funds remaining. However, if it does not reach a 100p dividend, your creditors are entitled to the funds as per your IVA proposal. All original proposals state that an "Individual Voluntary Arrangement will last for __ months (usually 60) or until 100p in the pound is paid, whichever is soonest". This will unfortunately mean that the redundancy will need to be paid, especially if you have already informed your IVA provider of the payment as this could delay closure and possibly fail your arrangement. If you wish to keep the funds your Insolvency Practitioner may need to arrange a variation meeting with your creditors to request you are allowed to keep the funds. Again this will delay the closure of your IVA and there is a possibility that your creditors will refuse to accept the proposed variation. If you choose to take that route and your creditors refuse then you have 2 options, either agree to pay the funds or allow your IVA to fail and contact your creditors directly. If you choose to take the second option you must be aware that your creditors are legally entitled to backdate interest on all debts included within the IVA from the date of approval and add this to the total, they are also entitled to add late payment charges for the term of the IVA. This is up to your creditors though and I have known of cases where they haven't done this. I hope this helps and you find a solution soon.
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luluj
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by luluj » Sun Jan 14, 2018 5:30 am
I would agree with Merlin however as your IP appears to already be aware of the situation then you will be expected to provide more return to your creditors from tbe redundancy money.

Great that he has secured new work already - well done !
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