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I have recently had an IVA accepted and implemented. However, I have been offered an out of court settlement from my previous employer as I am soon due to go to a tribunal for constructive dismissal. I dont know yet if I will accept a settlement or go all the way. What will happen with this money? Will I have to pay 1/2 or all of it into the IVA?

Are you now in new employment?

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
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Hi jh1
Sorry you have had to go through the tribunal process - it's never easy.
From what I know, the answer to your question depends on the clause in your IVA and the key is whether you have a new job or not yet. If you have then you do not need this money to support you financially (ie you have a salary payment. However you may need some of the money until you receive you first salary payment. If the first scenario is the case you will have to pay over whatever your IVA terms state - some state all, some state 50%. If you need to rely on this money in lieu of a salary until you get another job, my understandign is that this is OK but you will need to pay the remainder across in line with the terms of the IVA. Your IP will be able to answer this though as I assume they are aware of your situation and the possible tribunal claim.
Sorry to clarify, I am a HR practioner, hence why I understand about work matters and tribunals.
Sharon

This is a windfall unless it is being used to compensate loss of income, in which case it will be regularly absorbed until new employment is found. The 50% issue is not therefore relevant.

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

I only worked part time since leaving my former job and have been on JSA. If there is any payout by the tribunal it is for loss of earnings, and they take any income from any subsequent work off that amount. I am due to start a new job full time this month. Any out of court settlement will ofcourse only be a portion of what I would get in court if they were to uphold my claim.
The IVA was implemented a month ago and I left my former job 7 months ago. I have contacted my IVA practitioner and they said they dont have a definitive answer, they would ask the creditors, which to me means I would lose it all. I would be happy with 50% because at the end of the day I realise I need to pay my debts off. My partner lost his job shortly after the IVA was set in place but now has a new one, we did however lose a whole months salary and now have no car. Some money would help us catch up and get a modest run-about which we really do need.
In these circumstances can anyone shed any further light on the situ?
Many thanks for the postings so far )

How have you been managing to pay your IVA payments whilst subject to JSA only?

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 IVA was worked out on the basis of our household income at the time which was/is currently my partners income and anything I get from JSA, any benefits and part time work.