I'm in the public sector and it's possible I might be made redundant. If I am I could also trigger my pension. I'll be more than half way through my IVA. If this happens will I lose the redundancy money and the lump sum from my pension? I'd be on a reduced income (about 40% of current salary) so couldn't possibly keep up the current payments. Help!!!!!!!
You may find that any money you get from redundancy will be swallowed up by your IVA.
You may be able to offer a full and final offer with your lump sum.
One of the experts will be along to assist with advice
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
Hi
You can use your redundancy to pay for your day to day living whilst you find work. If you do find a new job any remaining redundancy will have to go into your IVA.
You could consider offering all or part of your pension lump and/or redundancy sum as a full and final payment to end your IVA
Regards
Thanks,
Clearly the best thing to do is to keep my IVA manager well informed as soon as anything definite emerges. Good to know there are options and I guess the further through the IVA I have progressed the better things are.
You will generally be allowed to retain up to six months salary equivalent if made redundant whilst you are in an IVA - the IVA protocol 2010 makes this specific but will only relete to new cases.
Any funds in excess of that will need to be handed over to your IP - but if you are nearing retirement age it may be possible to broker an early settlement with creditors. Speak to your IP if you are unfortunate to lose your job about the options then open to you.
Thanks to you too . It's reassuring to know it's not all doom and gloom! I'm also reassured because my IP at Grant Thornton has been fantastic throughout the process - I just wish I'd faced up to the reality 12 months earlier instead of trying to manage alone and making matters worse. Might have avoided losing my house....
