www.iva.co.uk

I have been made redundant this week and have contacted my IVA Co. Creditfix to advise them of my change in circumstance. I was hoping that I could use my redundancy payment as a full and final settlement.......they have advised that it's a windfall and will not be considered as a full and final is this correct?? All the forums I am looking at tell me something different. I am 5 years into a 6 year IVA please help!!

Hi,

Unfortunately it is classed as a windfall but you are usually allowed to keep up to six months money whilst you seek further employment then the rest has to be paid across. If you manage to pay off your total debts in full plus fees and possible statutory interest then the remainder would come back to you.

I am afraid that they are correct. You should be allowed to keep the equivalent of 6 months salary to live on (and pay your monthly IVA payments)while you seek work. The rest has to be paid over.

Yes that's corect - sorry.

Only if there are sufficient funds to pay off the balance of the debt plus statutory interest plus the costs would you then receive a surplus.

You could put forward a variation but creditors cal simply reject it and insist on the full funds (less the 6 months)