Redundancy payment

[Sopty]

A quick question, if I am made redundant later this year and receive a payment of about £8k, will this go straight to my creditors as a windfall payment, or am I allowed to keep it, keep paying the IVA until I find another job? Basically I would need to live off of it until I am back in work or don’t there see it that way.

Cheers, Mark.

IVA accepted, so 3 down, 57 months to go!!

My one bit of advice, if I can do it, so can you!

[lily]

I do believe that they would allow you to use this to pay your IVA until you find work, then they may nab the left overs, I am sure someone had this problem before. The experts will correct me if I am wrong.

Good luck

lily

[Sopty]

Thanks, lily, I am hoping that is the case.

Cheers, Mark.

IVA accepted, so 3 down, 57 months to go!!

My one bit of advice, if I can do it, so can you!

[Cybus]

I would strongly recommend that you contact your Supervisor before you did anything with those funds. If you were to be made redundant, then depending on how quickly you can find another job, your ability to make payments to the arrangement could be affected.

Please don't just assume that you can use the Redundancy payment to live off.

[MelanieGiles]

As Lily says, redundancy monies are paid for loss of office and therefore they must be used to replace that income until a new job is found. You will need to account to your Supervisor for your expenditure in the meantime, and hand over the balance of any monies when you do eventually start work again.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Sopty]

Thanks for the advice, when and if the time comes I will talk to my supervisor, what would happen if the money ran out before I found other work, would that push me down the BR route.

Cheers, Mark.

IVA accepted, so 3 down, 57 months to go!!

My one bit of advice, if I can do it, so can you!

[Adam Davies]

Hi Mark
If you were unable to find work before the redundancy money ran out then you will need to ask your IP for a payment break until you find work.I think that upto three months can be authorised by the IP and the missed payments tagged onto the end of the IVA.Any longer than that and they will need to call a variation meeting.
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

[Sopty]

Thanks Andy. I does not sound as bad as I thought.

Cheers, Mark.

IVA accepted, so 3 down, 57 months to go!!

My one bit of advice, if I can do it, so can you!