I am halfway though a 5 year IVA and am being made redundant at the end of this month. Due to my age and the current job market I am finding it very difficult to find a new position, let alone one with the same salary.
My payments to achieve a 25p dividend for creditors are very tight and as a result my IVA will probably now fail.
I am likely to receive £25,000 as a redundancy pay windfall and the amount outstanding on my IVA is £32,000.
I think my options are:
1. Immediately declare myself bankrupt and pay my creditors the £25,000. I currently rent my property, so little other assets are available. Clearly bankruptcy administration costs would reduce this figure.
2. Immediately offer my creditors the £25,000 in full and final settlement of the IVA. Any administration costs have already been paid. Perhaps I could keep some of the windfall to live on and use to move (for example) to find work. Would an offer of £20,000 be likely to be acceptable?
3. A further option could be to use the £25,000 as the deposit for a house, thus reducing my outgoings and (assuming a break in IVA payments is allowed whilst I attempt to find a new position) allowing me to complete the IVA.
Any advice would be appreciated before I write to my IP.
Speak with your IP
I would think that you could keep a figure equal to six months net salary and the balance paid into your IVA with your creditors accepting this as a full and final payment thus concluding your IVA.
I hope they do agree this and good luck
Hope you manage to find a new job and get your IVA sorted.
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