redundancy, what is my best course of action?

[jaykay]

I currently have an IVA, originally for around £31,000, and have paid about £7,000 off over 18 months. I have just discovered I will be made redundant in April, and may possibly get up to £100K in compensation, though at 50 I may not get another job very quickly. What is my best course of action?

[Cybus]

Are you sure about the £100,000 compensation?

That sounds an awful lot, irrespective of how long you have been with the employer. If memory serves me correctly, the maximum redundancy entitlement is 30 weeks pay - that is in a compulsory redundancy admittedly.

You cannot really determine the proper course of action at this time as you really need to be certain of the figures involved.

If it is £100,000, I would be tempted seek early settlement of my arrangement based upon an offer of a portion of the redundancy payment being offered to creditors in full and final settlement.



Tell it like it is.

[MelanieGiles]

If the figure is correct, I feel that you will struggle to get creditors to accept anything lower than 100p in the £, but speak to your IP and take their advice.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jk58]

Hi thanks for the replies. The £100k figure is correct, in fact a conservative estimate as I'm a long standing civil servant with 30+years service and the payment is temred compulsory early severance. Could I just clarify what is meant by 100p in the pound? I assume this means the amount that I owe now - there's no chance that creditors can now start pursuing me for interest? I would be quite happy to pay all of whatever remains of the £31k.

J Kerry

[debbiw]

100p/£ means the full original debt, less any money you have paid into your IVA, plus IP fees. x

[Cybus]

If the amount you are to receive is to be in excess of £100,000 then you have little option other than to offer repayment in full.

What you have to bear in mind is the fact that creditors may also ask for statutory interst to be paid - this is currently at the rate of 8% per annum.



Tell it like it is.