Full & Final Following Redundancy

Get expert opinion. This is the place for new questions to be posted.
8 posts Page 1 of 1

Kboy1983

Posts: 4
Joined: Thu Apr 01, 2021 8:07 pm

Post by Kboy1983 » Thu Apr 01, 2021 8:15 pm
Hi everyone,

I'm currently in year 2 of a joint IVA paying in £431 over 60 months.

Unfortunately I've just been informed that I'm being made redundant. My redundancy payment will be around £28k & I'm wanting to make an offer to my creditors as full & final settlement.

My Insolvency practitioner aren't being very helpful in terms of my options & what an acceptable offer would be.

I'm wanting to retrain for a new career, so don't want the pressure of IVA commitments & having to find a new job in the current climate.

Could anyone advise if they've had clients in similar situations & what the outcome was.

Thanks

Foggy

User avatar
Forum Expert
Posts: 32800
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Fri Apr 02, 2021 9:12 am
I am afraid that you cannot make a full and final offer from the redundancy compensation as that is payable into the IVA anyway, save for the equivalent of 6 months salary, from which you live, day to day, as well as continue the regular IVA payments, whilst seeking new employment or a gainful income.

There have, however, been instances where an IP has negotiated a settlement in such circumstances, regardless. But this requires an open and helpful IP.

Assuming you are not a homeowner and have a standard 5 year term a full and final offer (outside of redundancy) would need to be based on around £15k. You could, maybe, reduce this to, say, £13k (bird in the hand, etc.)

Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Kboy1983

Posts: 4
Joined: Thu Apr 01, 2021 8:07 pm

Post by Kboy1983 » Fri Apr 02, 2021 10:05 am
Hi Foggy,

My thinking is as follows:

I can look for another job internally, then would not be redundant & therefore not get the money. This would mean creditors never see a lump sum & would have to wait the full 60 months for full amount agreed when IVA is set up.

In the current climate, it's far from certain I'd find equivalent employment, so I might end up needing the 6 months worth of salary & then the IVA might fail after that anyway.

I'm going to offer 18k as f&f to my creditors. This lump sum, plus my monthly payments up to now would give them the return they agreed to when the IVA was approved.

I understand the redundancy clause, but accepting the f&f seems to be a no-brainer as it removes any chance of IVA failing & creditors get full dividend as agreed at approval.

Foggy

User avatar
Forum Expert
Posts: 32800
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Fri Apr 02, 2021 10:46 am
I agree that it is certainly worth a shot -- especially if you couch it in terms that you will consider accepting redundancy for the purposes of making this offer, otherwise you will consider the alternative of re-deployment.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Kboy1983

Posts: 4
Joined: Thu Apr 01, 2021 8:07 pm

Post by Kboy1983 » Fri Apr 02, 2021 11:16 am
Fri Apr 02, 2021 10:46 amFoggy wrote:
I agree that it is certainly worth a shot -- especially if you couch it in terms that you will consider accepting redundancy for the purposes of making this offer, otherwise you will consider the alternative of re-deployment.
Exactly, I would even be prepared to offer it all if it meant f&f.

I understand my credit is shot for another 5 years, but it will open up so much more opportunity to me if I could get it accepted.

I can retrain without the IVA payment hanging over me.

Will keep this post up to date, as I hope it may help others in similar situation.

Kboy1983

Posts: 4
Joined: Thu Apr 01, 2021 8:07 pm

Post by Kboy1983 » Tue Jun 15, 2021 8:21 pm
Just an update regarding this.

I put forward a f&f offer to my creditors for £18k & this was accepted last week.

I've made the payment & my ip are going to begin the completion process.

I understand this can take up to 6 months & my credit is still shot for another 4 years, however I've lived without credit for 2 years now without issue, so I don't need it anyway.

Hopefully this might help someone in a similar position & show that it is possible.

Cheers!

kallis3

User avatar
Forum Expert
Posts: 76741
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Tue Jun 15, 2021 9:23 pm
Great news - pleased for you and good luck for the future.
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

Foggy

User avatar
Forum Expert
Posts: 32800
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Wed Jun 16, 2021 6:57 am
Excellent news ! Great to hear that the creditors took a sensible view.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
8 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”