Redundancy in final year
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theboardroom
Posts: 2 Newbie
in IVA & DRO
Hi,
Me and my partner are 4 months into our 6th year of our IVA after failing to re-mortgage. My wife who is the main wage earner will be made redundant at the end of May. She will be paid 3 months notice and 34 weeks pay as part of the package, but she has no job to go to at present.
We currently pay £142 a month and will have 7 months left, but before we call our supervisor I'd like a bit of advice if possible about what we can expect?
At the end of May if she was not being made redundant we would owe just £994. She will get £4800 upfront for her 3 months notice and £16000 redundancy which sounds great even if she has no job to go to, but how much of this will we be able to keep? As you can imagine after 6 years of being in an iVA there are a lot of repairs needed in our house including the boiler which is only just ticking over.
Is it possible that they would accept a full and final settlement? I'm sure I heard somewhere that you get to keep 50% of any windfall, is there any truth in this?
Me and my partner are 4 months into our 6th year of our IVA after failing to re-mortgage. My wife who is the main wage earner will be made redundant at the end of May. She will be paid 3 months notice and 34 weeks pay as part of the package, but she has no job to go to at present.
We currently pay £142 a month and will have 7 months left, but before we call our supervisor I'd like a bit of advice if possible about what we can expect?
At the end of May if she was not being made redundant we would owe just £994. She will get £4800 upfront for her 3 months notice and £16000 redundancy which sounds great even if she has no job to go to, but how much of this will we be able to keep? As you can imagine after 6 years of being in an iVA there are a lot of repairs needed in our house including the boiler which is only just ticking over.
Is it possible that they would accept a full and final settlement? I'm sure I heard somewhere that you get to keep 50% of any windfall, is there any truth in this?
0
Comments
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Why don't you first try getting your creditors to agree to a "all payments made to date final settlement" ?
That's what I did in a similar situation, I didn't mention redundancy, just that my job was ending on such an such a date, and the new job I was moving to paid conciderably less than my current position.
I too was at the start of year 6, my creditors accepted the offer, and that was that.
Worth trying before you mention anything about redundancy.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi there and welcome to MSE,
You will need to check the terms and conditions of your IVA. They can all vary and that includes how much of any windfall you may be able to keep (if any).
You may be able to do a deal with your creditors or your Insolvency Practitioner but you must tread carefully. If your IVA is classed as failed for any reason, then there is a risk of bankruptcy, and that can put your home at risk if there is any equity in it.
Make sure you fulfil your obligations under the IVA to keep the risk of failure to a minimum.
Laura
@natdebtlineWe 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 Steps0
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