My husband has just found out he’s likely to be made redundant in 18 months time, his company are now going through the consultation process! He’s worked for them for 20yrs and they are relocating abroad so the whole place is closing down!
We started our Iva August 2017 so will be 3 yrs into it by the time the redundancy happens!
We had 34k of debts and pay £193 pm for 5 yrs totalling £11800
Now the company are talking about giving employees extra pay to stay on until the end and we think we are looking at a good pay out!
But is it really worth waiting, when he can take the time to look for a job that pays well and go straight from 1 job to another when we’re not going to benefit from this money!
Would it be worth making an early offer (when we know how much etc) for example we would give our creditors £15000 (minus what we’ve already paid) when we get the pay as full and final settlement so they then gain extra rather than change jobs and they get the same ( possibly less)
And then we can actually have some savings Which we will probably need because with 500 people from the same area all looking for work at the same time, I imagine jobs are going to be difficult to find!
Basically the redundancy money is payable into the IVA up to the figure ot the full original debt, plus fees and possible statutory interest. ( you will be allowed to keep 6 months worth of salary to live on and pay IVA payments from, while looking for work). They are unlikely to bargain with what is theirs anyway (although "never say never" in this industry!). Regardless, you must do what is best for YOU in the long run. From an employment point of view jobs will be easier to secure now, before everyone else is looking, but .... there is always a "but", as happened to a friend of mine a while ago, who did the same thing, a new job might be as insecure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for your reply
This is what I was thinking also, I’m not sure what’s best for us as a family with young children, and also as my husband has only ever had 2 jobs since he was 17 so not much experience in anything!
Im kicking myself now though, as we hadn’t defaulted in any of our debts before we took out the Iva.
We just had no disposable income left at the end of the month and contacted a debt help company who suggested an Iva.
Neither of our parents know we are in an Iva but both are in a situation to be able to help us, would it be worth speaking to them to see if they could, maybe between them, help us to settle the Iva early with full Iva payment (£11800)
Or could we not do that?
We do have to constantly ask for money from them to pay for car repairs and household items with no way of paying them back so by doing this they would (hopefully) not need to do this anymore.
If you could agree a F&F offer before you are under Notice of Redundancy and get the completion sorted before this too, then the redundancy money will be yours and the IP and creditors none the wiser. Do not mention the possibility at this stage.
Currently you are about 18 months in, so 42 left to go - - £8106 (assuming you rent and no equity has to be looked at). Considering that you will be saving them a bit in admin over 3 and a half years you could round the offer down a little to, say, £7,000
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
