redundancy money

[june.h]

my son is in a iva and just been made redundant when he gets his redundancy money will he have to give it all to the iva

[Soulgrowth]

Hi June ... just wanted to welcome you to the Forum. I wonder whether your son's redundancy might turn out to be a blessing in disguise ... he might be able to offer a full and final offer to his creditors to end his IVA ... but one of the experts will around soon to give you some good advice.

Debbie

[MelanieGiles]

Your son's redundancy money is paid to him as compensation for loss of office, and should be used to replace his income during the period until he finds another job. If the new job pays him a lower salary, then the money can further be used to make up the difference until it has all been absorbed.

If the new job is at a similar or higher level, and your son starts it before the money has been absorbed, then any balance is deemed to be a windfall under the IVA proceedings and therefore payable to the Supervisor.

He could use the money to make a full and finall offer to creditors, but this could be dangerous if it left him with no money to live on - and he would not be entitled to claim any state benefit until the money had technically run out.

[Soulgrowth]

Is your son likely to get another job reasonably easily June?

Debbie