Hi All
Our joint IVA began in Oct 2013 and we are now in the final year.
We owed approx £64000 at the start and pay approx £950pm
We were unable to release any equity in our house and so this is our 6th year.
We have 6 more payments at £950 and a 7th payment of £250 to make in Dec (due to a payment break early on) and then the IVA is done.
This year we are paying a dividend of 104 pence to each £1 owed.
The job I am in is extremely stressful and is undergoing rapid and radical change, staff are being offered a variety of Voluntary severance options as the organisation needs to make massive savings in this financial year
Mandatory redundnacy for many staff is guaranteed this year if not enough people leave voluntarily.
The mutual severance offer is very generous but staff have to apply in the next couple of weeks and if accepted, will leave the organisation fairly quickly
I think the offer for me would be around the £20k mark. (Much much less is it was mandatory redundancy)
If I was to leave voluntarily, would all of this money be swallowed up by the IVA?
If it all had to be paid over, would my IVA end there and then or would I still have to continue making monthly payments until Dec?
Could I make an F&F offer and keep the rest of the money?
Many thanks in advance.
It is likley that all except the equivalent of 6 months pay will be payable to the IVA and you will continue payments until the contractual end, unless the amount you habe paid in so far and the redundancy paid in equal the full original debt, plus fees and possible statutory interest, which on a £64k debt over the 6 and a half years so far would be around £11k in fees and maybe £20k in interest (8% p.a on reducing balance -- so difficult to calculate on the back of a fag packet!) --- so the IVA will end early if you hit around £95k before the contractual end.
A F&F offer will take around 3 months to get organised (sometimes longer) so is not really feasible now.
Really bad timing !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
That's fairly disappointing news, that I could end up without a job and without a lump sum of money and still have to pay off the rest of the IVA but I do understand that this is all part and parcel of an IVA.
I just hoped that being so close to the end, they would accept an F&F offer or at least take the whole amount but end the IVA
If I make it through to the end of the IVA but then get made redundant before the completion certificate arrives - would all of the redundancy money be taken in that circumstance?
Wed May 01, 2019 8:00 pmlizzie wrote:
Thank you for your reply Foggy.
That's fairly disappointing news, that I could end up without a job and without a lump sum of money and still have to pay off the rest of the IVA but I do understand that this is all part and parcel of an IVA.
I just hoped that being so close to the end, they would accept an F&F offer or at least take the whole amount but end the IVA
If I make it through to the end of the IVA but then get made redundant before the completion certificate arrives - would all of the redundancy money be taken in that circumstance?
Thanks in advance
In theory - yes. Until that certificate is issued you are still bound by the agreement. Whether your IP will enforce it, I cannot say.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
