If you are made redundant during the IVA ?

[Jane.66]

If you are made redundant during the term of the IVA, how much of the debt are you legally obliged to pay off out of any redundancy settlement - just the proportion you agreed at the start of the IVA eg 44p in the pound , or the whole debt. My concern is that I will have to pay the the whole lot and not have a job either. Is some or all of a redundancy payment protected until you have secured another job or is it still classed as a 'windfall'?

[ginger3232]

Hi Jane welcome to the forum - you will remain liable for all the debt + fees till the end

Usually you will be allowed to keep 6 months living expenses - the rest may be required for your IVA

[Pandy]

You would need to speak to your IP, some IP's allow you to keep the equivalent of 6 months worth of wages, the rest would go into the pot, but it is at the discretion to the IP unless it is specifically mentioned in your chairman's report. Ring your IP, they may allow you a payment break if after 6 months you have still not found new employment.

[Jane.66]

I asked the IVA company in my last letter but they completely ignored that point. That's why I thought I'd check on here first what the general feeling is.

[ginger3232]

Jane - each IVa is individual so you may find it varies from each individual. Just a suggestion - why not email your IP direct for advice, hopefully then the information you will get will be more useful to you.

[kazzafunk]

It is worth emailing them with just that question. It would really depend on your circs I think. I am trying for ill health retirement at present but if that fails (as it looks like it will) then there is a chance I will be made redundant at the end of next year. I would be looking to keep quite a bit of the payout (after meeting the dividend agreed at the outset) as I am unlikely to be able to get another job with my disabilities / sick record. I have been told it can be put forward and considered due to the exceptional circs. I would put the whole scenario to them so they get the full picture.

[Broke of London]

Redundancy money should be covered in your windfall clause and treated as such. There is no legal right to retain anything as the iva is a legal document in which you agreed how to deal with windfalls. It is pretty standard to be allowed to retain up to six months salary while you look for work.