Redundancy after final payment

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paul155

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Post by paul155 » Fri Feb 19, 2021 7:09 am
I was on an iva for 5 years paid my last payment then got made redundant and received redundancy after my last payment now they are saying I owe them more money .is this right ???

kallis3

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Post by kallis3 » Fri Feb 19, 2021 9:08 am
Have you had your completion letter? If so then the redundancy money is yours, if not then you are still bound by the IVA and they can ask for more money but you are usually entitled to keep up to six months money while you seek employment. Speak to them and find out exactly what they want.
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.
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Foggy

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Post by Foggy » Fri Feb 19, 2021 10:09 am
You are bound by the IVA until you get a formal completion notice and windfalls etc. can be captured.
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

plasticdaft

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Post by plasticdaft » Fri Feb 19, 2021 5:28 pm
Fri Feb 19, 2021 7:09 ampaul155 wrote:
I was on an iva for 5 years paid my last payment then got made redundant and received redundancy after my last payment now they are saying I owe them more money .is this right ???
Unfortunately unless you are formally out of the iva you remain bound by it.

Sorry about the job loss, what are your prospects like of finding other work quickly?

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.

paul155

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Post by paul155 » Sat Feb 20, 2021 2:31 am
This was April last year .I got another job in August but had to live off my redundancy but they still say I owe them .I only got £7330 does not
last that long

kallis3

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Post by kallis3 » Sat Feb 20, 2021 8:46 am
Did you get a completion letter? Have you checked the Insolvency Register to see if you are still on it? You would have been allowed to keep some of the money until you got your new job so I would query this with them again.
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

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Post by Foggy » Sat Feb 20, 2021 10:14 am
From redundancy compensation you are generally allowed to keep the equivalent of 6 months salary, with which to live on and pay the IVA. If you find new employment before that 6 months is up, you should pay the balance of the money you kept back to the IVA.

So, using simple figures for the sake of simplicity: Say your monthly take home was £1500. You get made redundant with compensation of £10,000. You get to keep 6 X 1500 = 9,000 and pay the remaining £1000 to the IVA. You then get a new job three months after losing the old one --- you will be deemed to have used 3 x 1500 = £4500 and the rest of the 9,000 should be paid back to the IVA.

I would imagine, in your case, that you kept the £7330, but you got a new job about 3 or 4 months after the old job ended. So, whatever is left after 3 or 4 times your usual monthly payment is due back to the IVA.

Ask your IP to explain, in writing, where he / she has got their figures from.
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
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