i am expecting to be made redundant in the next three months due to a loss of contract were i work my question is i am three years into my iva paying 350 per month i would expect to get about 10000 redundancy what would happen to my iva would they accept a reduced lump sum and if so roughly how much thanks
It would depend on whether you find another job and the level of your earnings. If you have a new job to go to the redundancy is a windfall and would be passed to creditors.A new I&E is then needed to see if the IVA can continue but if you have no job or no surplus any more creditors may accept some of the redundancy as full and final and allow you to keep some until you find a job.
Last edited by Michael Peoples on Wed Jun 24, 2009 1:29 pm, edited 1 time in total.
Sorry to hear about your redundancy. You could make an offer to settle early but it all depends how much you agreed to pay back in the first place over the 5 years.
Normally with a redundancy payment you will be allowed to use it for up to 6 months till you find further work and then the remainder would need to be handed over to your IP as it would fall under the windfall provision.
The best bet is to contact your IP directly and discuss
Hi
You have about 8k left to pay in your IVA so an offer of 6k should be acceptable to your creditors and return the original dividend.
Redundancy money is yours to use to live and pay your IVA. Once you find work the balance will be classed as a windfall and payable into your IVA.
A lump sum offer would be your best option in my view
Reagrds
