Hi all I have just been told I going to loose my job and will probally get 3 months money around 7k i am in the 4th year of my iva and my payments are 575 per month,I am not sure what to do as I dont think I will get a job very easily at my age,50, should i give the money to my ip or can i use it to survive whilst looking for work ie to pay mortgage etc.
You should notify your IP but you can normally keep up to six month's living expenses while you seek a new job. If you cannot find a new job within this timeframe it may be worth trying to get creditors to accept what has been paid to date as full and final settlement.
That is an option but this leaves the problem of how you are going to live until any benefit entitlement kicks in.
If you find a new job paying less and therefore leaving you no surplus you could offer what remains as full and final. Be careful about leaving yourself in a worse position but if for example you can manage to live on your partner's income a full and final may be the best way forward.
If they put this forward as a variation and it is rejected does that immediately mean that the iva will fail, that they will make us bankrupt and we will lose the house anyway. So, could I for instance say that if its rejected I go back to paying the monthly repayment using the 8K. Is that an option
Creditors are highly unlikely to reject a variation because you lost your job. They may offer a six month break while you seek employment but realistically they would likely take the offer.
A rejected variation would just mean the IVA continues under the same terms and conditions unless there are modifications put forward to terminate or bankrupt. Speak to your IP and hopefully your mind will be put at ease.
