Which path to take now after redundancy

[aragorn]

Hi,

We have been in an iva for 2 years, My husband has just been made redundant after 17 years service- it is such a shock , the money he will get will keep us going for no more than two months and then if he has not got another job we will be in panick stations and will need to make a Big decision before we are so much in arrears with Iva payments and mortgage.

His job was very well paid for this area and he cannot seem to find one that matches his wage so far but he is trying very hard. We really do not want to go down this routes but If so i feel we have two options:

1.If he cannot get the same paid job by 8 weeks time when he receives his redundancy pay- take any job (will be 10,000 less PA), use redundancy pay to put a large deposit down on private rent and hand back keys to mortgage company and go bankrupt. If we spend this money to secure housing will there be consequences such as a BRO- we do have a child and a roof over our heads is my top priority.What is the courts view on that?

2.IvA- Tell IP that we will sell house and pray creditors will accept approx £20,000 to clear IVA as opposed to our only other option of bankruptcy.

IVA start- £78,000 (without IP fees etc.)-No Missed payments so Paid approx £20,000 into pot so far.Modifications state 50% dividend or IVA will fail.


I really do not think they will consider option 2, i dont want us to go bankrupt or lose the house but unfortunately it will be out of our control.

Just when we thought there was a light at the end of the tunnel......


This forum is a godsend, Thankyou so much.

[MelanieGiles]

Hi there any very sorry to hear about your husband's redundancy.

The key here is not to necessarily knee jerk to do anything. Wait to see what his redundancy package will consist of and use that money to supplement his lost income over the next couple of months whilst he scours the job market.

If he does eventually find another job, albeit at a lower salary, revisit your budget to see if any savings could be made. Handing back the keys to your property, and moving into cheaper rented accomodation for instance might mean that the IVA could survive, perhaps with lower payments being made.

You may be able to conclude the IVA by making an offer of settlement which, given your circumstances ought to be acceptable to creditors, however will this leave you enough money to live on into the future?