Currently 9 months in to my IVA .. total 27k paying back at 138 per month as set out in the original plan
have been furloughed for 2 months and also will be for the next 2 months
have now been given notice of redundancy, payment in August of approx 3k
I have started a new job elsewhere on move money and effectively back in work straight away
my questions relates to what i should do now .. I am still paying my IVA as agreed and have informed them of the redundancy - they say this will be reviewed when i receive the money in august which is fine and I may have to lose the complete value of £3k to the IVA
but am I in breach of my agreement now? ive effectively now got 2 sources of income (furlough for the next 2 months plus my new job pay) I am very unsure if i should be holding back the furlough money for the IVA or if I am free to use this money
The IVA company haven't given me any guidance on this
If you have secured employment elsewhere, and you are no longer employed by the firm you are furloughed with, having been made redundant, so you should, as I see it, not be getting further furlough pay -- so this might have to be paid back. Purely based on the idea that furlough pay is designed to save your job with your current employer --- but that job no longer exists (or will not do so shortly). I could be wrong and a loophole will allow you to enjoy both incomes, in which case you shouls be splitting the surplus with the IVA. Assuming you have the usual 10% disregard you can keep an amount equivalent of 10% of your normal pay from the 'old' job and split the extra* income from the 'new' job 50 / 50 with the IVA (*after allowing for the 20% drop on furlough pay).
I would hold the surplus back in case the IP asks for any of it, either now or at review.
Just to complicate matters the IP might be of a mind to treat this as a permanent pay rise --- which is usually all yours until review and the IVA payment increases by 50% of the increase after the review.
You really do need to press your IP for guidance -- and get this in writing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk