www.iva.co.uk

Hi All,

I wanted to ask for some advice, I am in the position whereby my payment plan is calculated on the basis of household income rather than mine as an individual, (Quantuma are the Insolvency Practice - probably 1 to avoid).
Unfortunately like many others in this lockdown, my partner has been made redundant, so we are entering into a process of re-calculating the payment plan, the IP are already interested in the make up of any redundancy package is. I have replied with that there is x months statutory payment, currently awaiting their reply as to whether they are going to insist that the money is used to maintain current levels of income (which they have already done for the period of gardening leave).
My question relates to whether I need to make the IP aware that my partner is taking action against the employer which may lead to a larger settlement but also may also lead to nothing. So there is nothing to declare at the moment, but even if there is the money may go to fund setting up her own business or retraining into an alternative career.
So any advice would be welcome
Thanks in advance

You are entitled to keep the equivalent of 6 months salary, from which to maintain normal payments. If your partner manages rto get an increased settlement, anything over that 6 months is payable to the IVA. This is as it would apply to an individual income -- I am not sure how your agreement has been re-worded to incorporate household income ... whether that is for the purposes of the 'normal' monthly payment, or whether 'extras', like redundancy, windfalls and inheritances, are also captured.

Hi,

Whilst household income to calculate affordability is relatively common, it does not mean that your partner has any responsibility for any debt in the IVA. Assuming your partner is NOT part of the IVA, then the I.P. has no call whatsoever on the redundancy money.

You could choose to make a 3rd party settlement offer, if appropriate, (or, rather, your partner could offer the money) but the redundancy money is safe.

If I have misread or missed something then let me know, but that's my take based on how I have read your post.

Regards.

Hi
Thank you for the reply, I have posted before asking about the call of my IVA on my partner, my agreement is unfortunately penned to consider all household income and the payment plan is based upon the households free income. The I.P is already asking questions about settlement etc, we don't want to hide anything but there is also concern that they come calling for a slice of the cake (assuming there is even some cake), what we don't want is for the creditors to not agree to a new payment plan which could then force me into I guess bankruptcy.

Are there any impartial services that can be used to review the IVA agreement in place and ascertain whether the agreement and the I.P has acted responsibly ? I understand that I ultimately signed the agreement so that's my bed made, but as I read more in forums like this - you do start to question.

Thanks