www.iva.co.uk

im due to be made redundant in 6 months time but this will leave me with roughly £9000 left to pay (18 months left), this is not a problem as im due roughly £20,000 in redundancy pay now my question is are they entitled to take all of my redundancy money or just whats left owing??? as i will need to retrain to do something and the course i was looking at doing costs nearly £6000 ?????????? [?][?][?]

Hi
There is a possibility that they will insist on a large part of your redundancy as it is calssed as a windfall.
Chat it over with your IP, as there is a chance that they may ask your creditors to accept a lump sum equal to the original dividend [9k]
Good luck

It is likely that you will be allowed to keep the equivalent of six months redundancy money, with the remainder of your settlement needing to come into the IVA as a windfall. Your IVA payments will then need to be maintained.

If you want to propose retaining something for a retraining course, this will need the express agreement of your creditors.

With redundancy getting more and more common people do need to retrain to get jobs as skills required will change over the coming months. I still cannot believe that redundancy is classed as a windfall. It is earnings.It is too help you get by whilst you look for a job. I can understand the 50% rule(maybe) or even after you have managed to get a job then the rest goes into the IVA.

Redundancy money is a windfall as Andy says,but you will be allowed to keep % of this to allow you to manage whilst continuing in your IVA. You can suggest a F&F of £9000 to see if they will accept as a final payment, although, you do still owe 100% of what you owe until the IVA ends ......therefore you may be required to continue to pay monthly until you either reach the end of your IVA period or you pay 100% back.
Speak with your IP now so that you can plan ahead - if a F&F is offered and agreed then you will be ready to pay this in and end your IVA just as the redundancy kicks in - don't wait until it happens as it takes time for your IP to put together the relevant F&F documents to creditors etc. Good luck

I don't think a full and final is realistic. Why would creditors accept 9k when they can receive far more plus continuing payments by accepting it as a windfall. You don't keep six months automatically - it is usually only up to six months for as long as you are looking for a job. As soon as you get a job you pay in the remainder of the six month allowance. I don't think creditors care too much about our professional happiness...they just want their money back.

I quite agree that anything left once you have found employment or after six months, whichever is the sooner, will have to be paid across and payments will continue until the end of the IVA or you pay back 100p in the pound plus fees.

Of course creditors want to get their money back - surely that was everyone's expectation when the agreement to lend was made?

If you do get another job after being made redundant, I am struggling to understand why it is felt that it is unfair for the balance of redundancy monies to be used to repay creditors?

It is totally fair, and I would have no problem paying across anything remaining if I found another job.

Lots of people want to conclude when they come into some money but in my mind it's no different to a creditor changing their mind halfway through...and that's a scary thought! I find it best to assume all money I have is due to creditors until my IP confirms otherwise. That way I never feel anything is being "taken" from me.

I would have no problem paying over money after I found a job but only after I had a job as until then this money is what I have to live on. I would like to stress the point that if I was to get another job staright away after being made redundant(If I was) then I would quite happily pay the rest over.

You will find though that after six months you would have to probably have to speak to your IP about keeping anymore as I believe six months is the maximum.

I'm afraid that is not your choice to make Danny. The rules are pretty clear when it comes to the treatment of your settlement package.

just thought id write and let you all know whats happened with my redundancy and iva and how much of my money is being taken, out of the £22000.00 that i am recieving i will be allowed to keep £12500.00!!!! £9500.00 will pay off whats owing and complete my iva! (i will be jobless but hay i will be debt free!) i cant recommend grant thornton enough they have been great all the way through and to complete my iva in 42 months is amazing thanks for all the advice i have got from everyone here and now begins the credit rebuild! thanks

Well done Bingo - you must be over the moon?!!