Voluntary redundancy

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emma542
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by emma542 » Fri Aug 03, 2018 11:59 am
I’m currently in an IVA and have been offered VR at work.. will my severance be taken from me as payment towards the whole amount of debt or just the total IVA that has been committed to? Also my severance payout will be used as income as my pension can’t be released until I’m 50
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Foggy
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by Foggy » Fri Aug 03, 2018 12:15 pm
emma542 wrote:
I’m currently in an IVA and have been offered VR at work.. will my severance be taken from me as payment towards the whole amount of debt or just the total IVA that has been committed to? Also my severance payout will be used as income as my pension can’t be released until I’m 50


Assuming the usual clauses (check your proposal) you will be allowed to keep 6 months worth of salary, from which to live and carry on paying the IVA whilst looking for work. The rest will go towards your total debt, fees and possible statutory interest.
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emma542
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by emma542 » Fri Aug 03, 2018 1:09 pm
Foggy wrote:
emma542 wrote:
I’m currently in an IVA and have been offered VR at work.. will my severance be taken from me as payment towards the whole amount of debt or just the total IVA that has been committed to? Also my severance payout will be used as income as my pension can’t be released until I’m 50


Assuming the usual clauses (check your proposal) you will be allowed to keep 6 months worth of salary, from which to live and carry on paying the IVA whilst looking for work. The rest will go towards your total debt, fees and possible statutory interest.



Many thanks.. I have spoken to the company who advised that if I transfer money to a family member and advise the creditors that they want to make a settlement offer on my behalf then I don’t have to declare to the creditors what I am getting in VR?
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by Foggy » Fri Aug 03, 2018 1:14 pm
emma542 wrote:
Foggy wrote:
emma542 wrote:
I’m currently in an IVA and have been offered VR at work.. will my severance be taken from me as payment towards the whole amount of debt or just the total IVA that has been committed to? Also my severance payout will be used as income as my pension can’t be released until I’m 50


Assuming the usual clauses (check your proposal) you will be allowed to keep 6 months worth of salary, from which to live and carry on paying the IVA whilst looking for work. The rest will go towards your total debt, fees and possible statutory interest.



Many thanks.. I have spoken to the company who advised that if I transfer money to a family member and advise the creditors that they want to make a settlement offer on my behalf then I don’t have to declare to the creditors what I am getting in VR?


An interesting bit of, wholly incorrect, advice which I would view with extreme caution. If that is the way they are happy with, then so be it. But, I doubt that they would put that agreement in writing and, without it, you will have tecnically breached the IVA agreement.
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Lisa Thomas
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by Lisa Thomas » Fri Aug 03, 2018 1:38 pm
I would ask for this in writing as I believe this is completely wrong. You are proposing giving away an asset of the IVA then using it to settle the IVA!
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emma542
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by emma542 » Fri Aug 03, 2018 1:46 pm
Foggy wrote:
emma542 wrote:
Foggy wrote:

Assuming the usual clauses (check your proposal) you will be allowed to keep 6 months worth of salary, from which to live and carry on paying the IVA whilst looking for work. The rest will go towards your total debt, fees and possible statutory interest.



Many thanks.. I have spoken to the company who advised that if I transfer money to a family member and advise the creditors that they want to make a settlement offer on my behalf then I don’t have to declare to the creditors what I am getting in VR?


An interesting bit of, wholly incorrect, advice which I would view with extreme caution. If that is the way they are happy with, then so be it. But, I doubt that they would put that agreement in writing and, without it, you will have tecnically breached the IVA agreement.


I did ask them that.. they said that my Iva is already in flight and have been paying in for nearly 12 months and that if my son wanted to gift me the settlement and pay it all and the money is showing on his statement etc then they shouldn’t really say no... it will be the remainder of the IVA.?
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emma542
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by emma542 » Fri Aug 03, 2018 1:49 pm
Lisa Thomas wrote:
I would ask for this in writing as I believe this is completely wrong. You are proposing giving away an asset of the IVA then using it to settle the IVA!



Many thanks

They have said that if my son wants to settle my IVA as a gift then he can.. as it will be settling the whole amount of the IVA then I need not dec,are anything further?
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Foggy
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by Foggy » Fri Aug 03, 2018 1:56 pm
emma542 wrote:
Lisa Thomas wrote:
I would ask for this in writing as I believe this is completely wrong. You are proposing giving away an asset of the IVA then using it to settle the IVA!



Many thanks

They have said that if my son wants to settle my IVA as a gift then he can.. as it will be settling the whole amount of the IVA then I need not dec,are anything further?


Yes, your son can settle the whole IVA -- but this should be from his funds, not yours. Which firm is giving this advice ?
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emma542
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by emma542 » Fri Aug 03, 2018 2:01 pm
Foggy wrote:
emma542 wrote:
Lisa Thomas wrote:
I would ask for this in writing as I believe this is completely wrong. You are proposing giving away an asset of the IVA then using it to settle the IVA!



Many thanks

They have said that if my son wants to settle my IVA as a gift then he can.. as it will be settling the whole amount of the IVA then I need not dec,are anything further?


Yes, your son can settle the whole IVA -- but this should be from his funds, not yours. Which firm is giving this advice ?


So if he settles before I get VR then there is no problem?

This is so confusing
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Lisa Thomas
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by Lisa Thomas » Fri Aug 03, 2018 2:16 pm
Your son can do what he likes with his own money/assets. What he can't do is take your VR asset belonging to you/your IVA and then treat the VR funds as his own cash and propose to gift it back to you/the IVA....
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Foggy
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by Foggy » Fri Aug 03, 2018 2:30 pm
If you take VR before your son settles the IVA, then that money belongs to your creditors, NOT to you. You cannot give it to your son to use to settle the IVA. If your son settles the IVA before you take VR, with his own money, then the VR money would be yours to keep (and repay your son, if you so wish). My worry is that the dubious advice you have been given is possibly being given by a poorly trained call handler and can still be overridden by the IP if he / she gets wind of what is going on.
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emma542
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by emma542 » Fri Aug 03, 2018 3:16 pm
Foggy wrote:
If you take VR before your son settles the IVA, then that money belongs to your creditors, NOT to you. You cannot give it to your son to use to settle the IVA. If your son settles the IVA before you take VR, with his own money, then the VR money would be yours to keep (and repay your son, if you so wish). My worry is that the dubious advice you have been given is possibly being given by a poorly trained call handler and can still be overridden by the IP if he / she gets wind of what is going on.


I agree... I have asked this to the company in writing...I’ll keep you informed.. but from what I gather they have said to say you owed him money or transfer to someone else who can transfer to him and then let him gift it.. they said that you can’t ever pay more than the IVA is set for so won’t matter, because by the time I’ve took 6 months salary paid rent and got taxed that’s all that’s about left ...
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Foggy
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by Foggy » Fri Aug 03, 2018 3:25 pm
emma542 wrote:
Foggy wrote:
If you take VR before your son settles the IVA, then that money belongs to your creditors, NOT to you. You cannot give it to your son to use to settle the IVA. If your son settles the IVA before you take VR, with his own money, then the VR money would be yours to keep (and repay your son, if you so wish). My worry is that the dubious advice you have been given is possibly being given by a poorly trained call handler and can still be overridden by the IP if he / she gets wind of what is going on.


I agree... I have asked this to the company in writing...I’ll keep you informed.. but from what I gather they have said to say you owed him money or transfer to someone else who can transfer to him and then let him gift it.. they said that you can’t ever pay more than the IVA is set for so won’t matter, because by the time I’ve took 6 months salary paid rent and got taxed that’s all that’s about left ...


They are still giving you duff information! You can pay more than the IVA is "set for " .... you can, if you had the funds, say from a lottery win, inheritance, or redundancy, pay up to the full original debt, plus fees and also statutory interest at 8% p.a.
Also -- if you owed him the money and didn't declare him as a creditor at the start of the IVA, the creditors could fail the IVA for non-disclosure.
What they are suggesting is, frankly, fraud .... and that could come back to bite you later on !
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MerlinL14
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by MerlinL14 » Fri Aug 03, 2018 5:56 pm
Hi Emma, I have got to chime in and say that the advice you have been given is hogwash. There is no way that you can use a VR sum to gift to anyone for them to then gift the money back to you to use as a Full and Final payment. I find the whole thing so dodgy that the saying "if it sounds too good to be true...." is a sound piece of advice. I know the best option for you is to follow the (bad and illegal) advice and just end the IVA and put it behind you, but if you chose to take the advise and follow that route I feel that you are going to come unstuck and not only fail your IVA by way of a breach but end up with far more debt again with no way but BR to get out of it. Sadly if you take VR you will only get 6 months equivalent in salary, the IVA will swallow up the rest and you will still have the remaining term of the IVA to go.
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abbiesmum2003
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by abbiesmum2003 » Sat Aug 04, 2018 6:36 am
Wow just wow! Read the thread and it just got stranger!
Im with merlin amd felt had to reply.
That is the biggest load of unhelpful and illegal advice I think ive read.
Its not confusing.
The VR is your money not your sons.
The IVA document should state what happens with this money and as foggy says the usual is you can keep 6months equivalent of your current income to maintain payments as you do while employed, and seek further employment. The rest would be paid to IVA as asset as any other windfall would be.
You cannot give away an asset as this will lead to serious consequences.
Secondly, you always owe your FULL original debt through course of an IVA plus fees and stat interest. So despite what your payments total and you have been given an expected figure to pay back over the 5 years...you can and often do pay back more through things like overtime, inheritance and PPI claims. The figure you get suggested of what youll repay is a propsed sum but you always owe the full debt amount you entered an iva with plus significant fees and interest and you should aim to repay as much as possible not fixate on the proposed amount.
I do hope this gets resolved without breaching your iva. Read your paperwork and check out the clauses. find some posts on her regarding VR for previous forum
members and get anything your iva company tells you confirmed in writing before taking any action.
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