www.iva.co.uk

Currently in an IVA - since about April - now have threat of redundancy-I understand that the redundancy package I get will 'all' be taken for the IVA-if I dont get another job straight away-what happens -how do I continue to pay for IVA.If they reduce payments how long are they likely to reduce them for.

Hi gra and welcome to the forum

The redundancy package that you are offered will not be deemed to be a windfall as it is money paid to you as compensation for loss of office, and as such needs to replace your lost income until you find a new job. Of course you will need to maintain your IVA payments in the meantime, and perhaps then seek a payment holiday once the money has all been absorbed.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hello gra32,

A windfall is usually defined by an amount of money received that was not expected, example inheritance or lottery win. Although a redundancy can be unexpected it is different as you have also lost your income.

I would keep your I.P in the loop just to let them know, and also continue to update them when you have found a job or when you need a payment break.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

I doubt your redundancy money will be deemed a windfall as you will likely need this to fund your living expenses whilst you find a new job.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

I'm facing the same sort of situation - did you get a resolution to your issue ?

Hi Misc,

Are you currently in an IVA? If so how far along are you? could you post some more about you situation?

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

Yes I am, the IVA is due to terminate in April 2009. I am due to be made redundant in December. Melanie Giles and Andy Davies gave me a very strong indication that my redundancy pay should not be taken as a windfall as I would then have no income or any means of supporting myself. The redundancy payment is sufficient to satisfy the minimum tariff of 38p in the £ and leave me enough to re-build my life.

Debt Free Direct are being quite insistent that the redundancy pay is a windfall and that I may have to pay it into the IVA and make an application to retain some of it, for living expenses. I am nearly 48 years old and have a stutter when I am nervous, such as in an interview situation. Last time I was unemployed I was unemployed for a year. My redundancy package will amount to some £ 34 k after tax and I am proposing to pay 10 k into the IVA to meet the minimum tariff.

Hi Misc
You make sure that you stick to your guns.The redundancy money that you get is not a windfall and is to be used to live off whilst you seek employment.Your offer of 10k would be accepted by your creditors,you just need DFD to propose it.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Are you actually speaking to your IP or a member of his/her staff. Insist that you speak to your IP as what you are being told is not correct in my opinion, and I would love to see this go to Court so we could get some clarification.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi
Really this redundancy clause should be standard across the industry.It should not be down to how your IP interprets it or how your proposal was written.It really should be the same for overtime,bonus's and windfalls.At least then everyone will know where they are and what's expected.
Seems a bit of a lottery to me
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Agreed - and one that needs sorting out within standard terms and conditions. For someone to say that redundancy money is a windfall, until someone has found alternative employment, is professional naivety in my opinion.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

The thing that really upsets me is this . . . I am going through the worst time of my life, I may never work again - yes I'm getting a big payout - but all I'm asking for is a fair crack of the whip in my attempts to re-establish some sort of integrity in what has been a totally shameful experience from me.

They are using my vulnerability, at a time when I most need support. If I was of a lesser character, I would have done something silly by now. I believe they are relying on the fact that people don't have the access to such excellent forums as this, and are taking advantage of it.

I've talked to them on the phone, I've talked about the fact that their actions could leave me homeless because of my stutter, because it might be hard to get another job . . . and yet their response is so cold and uncaring. I hope I am never in the position where I have to treat people that way. I am very tempted to start a new posting on here . . . warning people not to use Debt Free Direct, so that other people are not tempted to use their "services"

You have to speak as you find misc - personally I would try e-mailing your IP directly now, who may be totally embarassed about what is being said to you by his/her staff. If they still continue with their opinion, then I suggest you seek legal advice as to the nature of a redundancy payment within IVA proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi Misc
In many of the large IVA providees you speak to office staff/case workers who don't always give the correct and difinitive answer.Write a recorded letter to your actual IP and post back with the response that you get.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

I've received the f+f statement from dfd. Their conclusion states . . .

Mr W wishes to present this offer to creditors for consideration. I have advised Mr W that is likely that creditors will either reject this offer or request that it is increased due to the level of redundancy package received. Mr W however has requested the offer to be presented as it provides the same level of return as anticipated in the original proposal.

They have never advised that it was likely that my creditors would reject my proposal, in fact they told me that they wouldn't present it if they didn't think it would succeed. They have made no mention of the fact that if my offer was refused, instead of being made redundant, I might get a transfer to Australia.

If I was reading the proposal as a creditor, I would feel that I might as well reject the offer as I might claim a larger portion of the redudancy cheque.

Can I insist that they mention Australia - it looks like they are recommending refusal - is there anything I can do about that ?