www.iva.co.uk

myself and my friend are both in iVA's with different people and we were talking about possible redundnacies on site. I said about keeping six months and pay the rest over and he said he wasn't going to as redundancy is not mentioned in his chairman's report. it says about windfall but redundancy is not mentioned. He always pays his extras over as that is in his report to do so. Is he right or am I?
We do have some very interesting conversations don't we. Oh well back to the football.

Redundancy pay will be classed as a windfall, but you are usually allowed to use it to fund normal household bills whilst you find another job.

You could both be right. In most cases redundancy is classed as a windfall AND you would be allowed to keep up to six months pay while you look for work.

You would both need to speak to your IPs before doing anything tho.

If you're having problems then the first port of call is the IP. They will always be sympathetic if you have problems.

danny the simple answer to your question is your friend is absolutely wrong.while as stated you would be allowed to keep redundancy money in the mid term to live off, until employment was found.any remaining funds if re.employed would be classed as a windfall and would have to be put into the iva pot.it is very important to inform your ip of any changes to your circimstances like redundancy.so you can be advised properly of your obligations to the iva and helped in anyway your ip could do so.

I think it's hypothetical at the moment, but it does depend on each IVA as to what is allowed in redundancy.

Always best to speak to the IP.

Kakkis is right it is only hypothetical at the moment. Our site is reducing numbers but nobody knows who is going yet. We just need to wait and see. Because of the announcement it really just sparked a conversation off between us. It's just nice to kow that I'm most probably right for a change.

Redundancy provisions are contained in all IVA protocol proposals - another benefit of using IP firms that have fully adopted these terms.

My friend will still not concede. There is no mention of IVA protocol in his and nothing about redundancy. He hates to lose.

There is nothing in mine about redundancy either and it is a protocol compliant IVA.

How do you know if it's an IVA protocol compliant IVA?

Speak to your IP..

In my case we offered the creditors half of my redundancy money and was accepted 100% in favor

I could not believe they accepted the offer as I owed a lot lot more..

I was allowed to keep the other half of the money to maintain my living costs while I was looking for a new job..

Irrespective of whether a proposal is 'protocol compliant' or not, redundancy and the offer of a settlement would need creditor sanction. If a payment break is required it is easy to call a variation meeting and no one wants IVAs to fail through no fault of the debtor.

You can tell whether your IVA is protocol or non-protocol by reading the front page. IPs using the protocol have to make it crystal clear on the front what type of IVA it is - however in reality in my firm protocol and non-protocol proposals have exactly the same terminology.