How will redundancy affect our IVA's?

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

BAXBEV

Posts: 5
Joined: Wed May 30, 2018 6:55 pm

Post by BAXBEV » Wed May 01, 2019 2:18 pm
Ive been looking at the site for advice etc and there is so much information i never knew on here which has been really good to know .

i would like to know if some one could tell me what a full and final settlement is as appose to a settlement.

Why i ask is im 4 month off the end of the 5 years of a IVA me husband and i both have a IVA his is for £23,000.00 and he will have paid £22,848.80 into the iva at the end of the 5 year and we will probably have to pay another 12 months due to the equity release mine is for £27,000.00 and i will have paid £26,191.00 into the iva after the 5 years .

my husband may be made redundant and receive a large redundancy could be as much as 50k do i ask for a full and final for his IVA and pay it off with the redundancy or will i have to give them it all in settlement do we have a choice and how will his redundancy payout effect my IVA ?

thanks in advance for all the information

Foggy

User avatar
Posts: 33396
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Wed May 01, 2019 3:18 pm
Redundancy compensation is payable into the IVA, except for the equivalent of 6 months salary which is yours. As the creditors are due to get it anyway they will not bargain with it.

A settlement is when you pay off what is left owing to take you up to the full original debt, plus fees and possible statutory interest. A F&F is where you offer to pay off the remaining agreed payments in a lump sum. You cannot make a F&F with money they are going to get anyway.

If, with what you have both paid so far, covers the settlement figure the IVA will stop and anything over that figure will be returned to you. You could try to get this reduced by asking the creditors, through the IP, if statutory interest could be excluded --- indeed, it may already be excluded (mine was).

So -- on a previous post I reckoned that the settlement figure, with interest, would be around £69k (without interest somewhere around £59k. You will have both paid in, around £49k. So, out of the redundancy compensation, they should only need £10k or 20 k (depending on the interest situation).

These are all off the top of my head, very rough calculations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
2 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”