Redundancy looming

999frogs
999frogs Posts: 15 Forumite
edited 10 July 2015 at 4:45PM in IVA & DRO
Bit of an update

PP have responded with "tell us what you're getting and we'll tell you what we expect you to do with it". Bit disappointing really.




Hi all

Well 5 successful years into a 6 year IVA and redundancy looms.

Have let my ISP know and asked them what the options are but would also like advice from the erstwhile crew here :)

My understanding is that ...
a) ISP will be due some of the redundancy (% ?) ?
b) What's left can't be used as an offer for a F&F ?
c) If I don't find another job and can't hit the IVA payments I'm likely to default and BR (bit of a downer after 5 years) unless I can renegotiate ?

What's the position with pay 'in lieu of notice' - this should just class as pay, not a windfall, right ?

Anything else I should take into consideration ?

Thanks all

Comments

  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi 999frogs


    Don't know if you've had answers elsewhere since posting/updating your query.

    999frogs wrote: »
    a) ISP will be due some of the redundancy (% ?) ?


    It depends how your IVA agreement has been worded, but yes, your IP will almost certainly be entitled to claim some of your redundancy package. Any pay in lieu should be treated separately and should not usually be classed as a windfall.

    999frogs wrote: »
    b) What's left can't be used as an offer for a F&F ?


    I don't see why not. The terms of the IVA may allow you to retain a certain % of any redundancy package. If you choose to offer some/all of any protected portion as a full and final settlement, the IP can arrange for creditors to vote on whether this would satisfy them. The offer might look particularly appealing to them if you are struggling to find fresh employment.



    999frogs wrote: »
    c) If I don't find another job and can't hit the IVA payments I'm likely to default and BR (bit of a downer after 5 years) unless I can renegotiate ?


    The likelihood is that your IP would try to avoid the IVA simply failing altogether. If I understand correctly from your previous posts you don't own your home or any other significant assets, so there won't be much appeal for your creditors in making you bankrupt.




    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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