Full and Final Settlement - Redundancy

[Willy Wonka]

Hello,

I have been offered redundancy and although I haven't taken it, I am tempted, but it depends what I could offer as F & F.....

I have approximately £6000 left to pay, if I carried on until the end of my IVA.......

I have a general question really. What do the creditors have a right to ask for?

I am probably going to be offered in the region of £11,000. Based on that, if the creditors would accept £5000 (or £6000 at most) I would take the redundancy, pay the F & F and re-train and take up another job.

My questions really are 1. Would they be likely to accept? And 2. How much could they technically ask for from me?

[plasticdaft]

If you have another job in the wings,then your redundancy could become a windfall so be very careful. Talk to your IP about it.

[kallis3]

If you don't have a job, then they may accept some as a F&F, but you usually use the money to fund your living expenses until you find another job, then any left over has to be paid across.

Best thing to do would be to speak to your IP.

[Willy Wonka]

I dont have another job lined up, but would do training to help with finding a job.

Is this a normal situation though, I suppose is my point - i.e. redundancy money being used for F & F and if so, is it normal for

1. ALL the redundancy money being handed over
2. Money handed over up to what you would otherwise have paid
3. Money being handed over to take you up to the full amount owing
4. Offer being made based on what you would have otherwise paid and other plans/living expenses.

Really confused and also this is clearly a big point!

Cheers

[plasticdaft]

How quickly do you think you could get another job??

[David Mond]

I dont have another job lined up, but would do training to help with finding a job.

Is this a normal situation though, I suppose is my point - i.e. redundancy money being used for F & F and if so, is it normal for

1. ALL the redundancy money being handed over
2. Money handed over up to what you would otherwise have paid
3. Money being handed over to take you up to the full amount owing
4. Offer being made based on what you would have otherwise paid and other plans/living expenses.

Really confused and also this is clearly a big point!

Cheers

To specifically to answer your points:

1. Yes all redundancy is considered a windfall and all of it should be paid in in accordance with your IVA proposal

2. No

3. Yes to cover 100p to creditors plus all IP's costs

4. No

You would be entitled to keep 3 to 6 months worth of net wages to cover period of looking for a job.

To offer a F&F you should speak to your IP and suggest that you could take voluntary redundancy and whether creditors would accept a F&F of say £5,000 then I think they might accept.

[Willy Wonka]

If I did the training I wanted to do I expect I could get another job in that field or in ANYTHING (I would do anything) within 6 months.


And thank you for that response David. I am worried because I expressed an interest they may make me go and I'd have to hand it all over, my IP is organising a meeting to tell them the offer is there if they will accept £5000.

[David Mond]

Thats the way to go about it - good luck.