I being made redundant next week

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by kevin134 » Fri Jan 12, 2018 11:17 am
I being made redundant next week I'm in an iva I'm 13 months into it if I cant find a job do the iva go ahead with a bankruptcy, and if they do will they add my car and other debt that didn't make it in to the iva as my car would have to go back to the car company thanks
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by Foggy » Fri Jan 12, 2018 12:34 pm
You will be allowed to keep the equivalent of six months salary from any compensation. The rest will go into the IVA. This will keep you afloat and paying your regular payments for up to the six months, while looking for work. If, at the end of this time, you do not find work you can ask for a payment break, which will be added on at the end of the IVA term. If all else fails you might be able to re-negotiate new, lower, payments.

If you cannot maintain the IVA it will fail and you will be back to square one with creditors. BR is not automatic, unless this has been already agreed in your terms. It is likely that a car on lease purchase will be repossessed any shortfall will then become an unsecured loan and be part of BR, if it happens. Other secured lenders will rely on their security in the same way, any shortfall also becoming unsecured debt.

You need to discuss options with your IP and keep them in the loop.
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