done 3 years out of 5 in an iva, now i am being made redundant with a lump sum, can i pay off family members who have had loans for us first before trying to settle the iva as i will now be unemployed. what is the best way to go about asking for an early settlement figure?
Redundancy compensation is payable into the IVA, apart from the equivalent of 6 months salary which you will be allowed to keep and with which you will be expected to live and pay the IVA as normal for those 6 months while you seek alternative employment. You will not be permitted to repay loans from friends and relatives ahead of your creditors. I would not mention these to your IP as they could be grounds for failing the IVA.
A full and final figure is based on the remaining payments ( plus 12 if you are a homeowner) -- a settlement is basd on repaying the full original debt, plus fees and statutory interest ( much more expensive). Money has to come from a third party or be funds not otherwise due to be paid in anyway --- maybe from your 6 months allowance (as long as you are sure that you can survive without it.) .
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If the family members loaned you the money pre IVA then their debts should have been included in the IVA. Were they listed as creditors?
If these monies have been loaned post IVA you may have breached the terms of your IVA re obtaining credit - unless the amounts are lower than the minimum (standard is £500) in your IVA terms or you obtained consent from your IP.
Paying them any redundancy money will be a preference and will likely fail your IVA.
In addition, as Foggy says, you need to declare the redundancy money to the IP and it's likely that at least some of it has to be paid over into your IVA.
