Redundancy whilst in an IVA

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1
User avatar
pat598
Posts: 3
by pat598 » Tue May 01, 2018 9:18 am
We are in an IVA and are entering our fifth year now. My husband, our main wage earner, has been told he is being made redundant around August 2018 and he is 62 with only 4 years working life left, so not sure how successful searches for alternative employment will be.

We have read our original document again and if he is made redundant, we can keep 6 months' worth of the money with the rest going to the IVA company as a 'windfall' payment.

At the end of this last year, a family member has said they can buy us out of the IVA if it equates to 12 x the monthly payment, so we are literally looking at 8 months remaining, once he is made redundant.

I wonder if any of you know whether this information about retaining 6 months' worth of redundancy money is correct or whether we will lose it all, it would provide a cushion for the next 8 months in case he gets temporary work, or worse still no work at all.

We also wondered whether it was worth asking the IVA company if we can give them the redundancy money entirely for a buy out or whether it is worth us considering asking if we can sell the house and pay the whole debt off?
Any advice welcome.
User avatar
Foggy
Forum Expert
Posts: 27295
Contact
by Foggy » Tue May 01, 2018 10:24 am
I would advise against selling the house. Yes, it is correct that you are normally allowed to retain 6 months worth of salary while looking for new employment, from which you pay your usual monthly payment going forward.

I would be inclined to have a word with your IP and explain the situation --- any F&F takes a few months to go ahead, so you might run out of time. A fly in the ointment might be that you will probably get a 12 month extension in lieu of equity to deal with as well.
User avatar
pat598
Posts: 3
by pat598 » Tue May 01, 2018 11:52 am
Thanks for your reply, how do you mean it will take 6 months? We have not yet received his official notification so we are waiting to be sure he is being made redundant.

How do you mean an F&F, is it a review?

We have been advised that there will be a 12 month extension at the end of the next 12 months but we think a family member can buy us out, which would leave us free of the IVA, hopefully, but it all depends on their demands.
User avatar
Foggy
Forum Expert
Posts: 27295
Contact
by Foggy » Tue May 01, 2018 12:00 pm
pat598 wrote:
Thanks for your reply, how do you mean it will take 6 months? We have not yet received his official notification so we are waiting to be sure he is being made redundant.

How do you mean an F&F, is it a review?

We have been advised that there will be a 12 month extension at the end of the next 12 months but we think a family member can buy us out, which would leave us free of the IVA, hopefully, but it all depends on their demands.


To make an offer to pay up the IVA contributions in a lump needs a variation --- it is usually made as a full and final offer. These offers should take around 2 months from offer to acceptance ... but some firms are taking up to 6 months (and beyond).
User avatar
pat598
Posts: 3
by pat598 » Tue May 01, 2018 12:05 pm
Thanks again and I see. That would leave us with 6 months left so probably not worth asking to buy out. We will probably be better just riding this out. His expected date to leave his work is 31st August 2018, which leaves 8 months before the end of the 5 years, with a relative buying us out next March/April.

It looks as though it is better to ride this out then.

We just want this monkey off our back!!!
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 33 guests