I am two and a half years through an iva. I have found out that I have been made redundant. I have no job to go into as yet. The money is enough to pay the total debt but I would have nothing left at all. My house is in need of some vital repair and I would like to use some of the money to do this. Is there any way doing this. I have small children and I feel my house is not a suitable environment for them at this time.
I am being made redundant.I called payplan today to get advice and must say I was disappointed with the "help" the advisor gave me.
She persisted to tell me that I would get to keep 6 months of the redundancy money and continue with my IVA. I asked if there was the option to make an early settlement fee and finish the IVA all together. She said policy was to get 6 months redundancy money and continue with the plan... .
I feel that there must be a way of finishing the IVA all together if this is my choice. There must be a settlement fee?
At the same time my property is incredibly damp and the roof needs fixed and the double glazing needs replaced. All things that with small children I would feel necessary to fix If I had some money ( which under an IVA I have not had)
How can you continue with your payments if you are not working ?
Creditors are entitled to the redundancy money, less six months normal net wage, but if you fail to secure a new job you could ask your creditors to accept the windfall as full and final payment
Hi. The terms agreed in your proposal, in the event of redundancy, appear to be the standard ones: You get to keep 6 months with which to live and pay the IVA as normal whilst looking for work -- the rest is payable into the IVA as extra dividend.
The creditors are unlikley to agree to allow you to use money that is theirs anyway to make a settlement.
If you can get third party funds on top to make a settlement ( money the creditors wouldn't normally have made available to them ) you need to make an offer in the region of your monthly payment times the months remaining.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
so for examples sake I get 20,000 redundancy.. I originally owed 15,600. I have paid 250 a month into an iva for a year and a half. I am not able to say here is 20,000 please can I finish this iva forever?
If you can pay your original debts plus any IP fees then your IVA may conclude.
Were your original debts £15600 ? if so then you should have enough to settle in full and close your IVA
Yeah, originally 15,600. It has actually been 2 1/2 years since I set up the IVA.
Who can I speak to about this if payplan are not giving me all of my options?
I think that Payplan have probably given you completely accurate advice. You may well get another job within that six month payment period, and your redundancy money is captured into the IVA under the windfalls clause. You may also have the ability to take up to a sixth month payment break, thus allowing even more time to find yourself another position.
If you are unable to find anything within that timeline, you may well be able to offer an early settlement based on payments paid in to date - but unless the house repairs are absolutely essential from a health and safety perspective, I wouldn't see any other IP giving you alternative advice unfortunately - and at the end of the day you are a Payplan client so only they can really advise you.
How difficult do you think it will be to find another job at the level you have been earning?
I have been thinking things through and just want this IVA to be over with. I am getting just over £5000 more than what I originally owed and I have been paying into the IVA for 2.5 years. I want to make a final settlement and am really hoping that this is possible. I will concentrate on my house at a later date.
My personal opinion, and it is mine, is you should retain the six months equivalent of your wages, pay the rest to your iva for your creditors .... If you are close enough to the original debt having been repaid, with your monthly payments included, in six months time if you are still not working then seek closure based on payments to date ...... You will then have clearly tried to maximise your payments to creditors.
Simply signing on for JSA will not provide you with the level of benefit required. There are lots of new hurdles in the benefit system and it may not provide you with what you think. The economic situation is far better than 12 months ago so hopefully you will gain new emoloyment sooner.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
