What should I be doing with extra money?

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1

richard904

User avatar
Posts: 2
Joined: Thu Jun 18, 2020 5:27 pm

Post by richard904 » Thu Jun 18, 2020 5:27 pm
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

Foggy

User avatar
Forum Expert
Posts: 31243
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Thu Jun 18, 2020 7:15 pm
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

richard904

User avatar
Posts: 2
Joined: Thu Jun 18, 2020 5:27 pm

Post by richard904 » Thu Jun 18, 2020 8:50 pm
Hi Foggy

Thanks for the reply

Whilst furloughed you are allowed to seek other employment if your employer agrees - which they did

My redundancy has been confirmed for August 14th but until that point I’ll still receive furlough pay at the gov 80%


I’ll contact the IP again to try and get clarity on the situation, just don’t want to unknowingly breach the agreement

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Fri Jun 19, 2020 10:09 am
Assuming the furlough money related to your wage then you should use this income to pay your presumed normal IVA contributions.

The redundancy money will also have to be paid over, likely in full as you have found new employment.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

luluj

User avatar
Forum Expert
Posts: 10906
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Fri Jun 19, 2020 11:15 pm
Great news that you have secured new employment- well done. I would be ready to hand over your furlough money and any redundancy money - not sure you will get away with not.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”