Redundancy and IVA
theboardroom
Posts: 2 Newbie
in IVA & DRO
We are in the 6th year of our IVA having failed to remortgage in Dec last year, so we only have until December this year to go.
Unfortunately my wife who is by far the main wage earner as I am involved in a small business has been made redundant. They have given her 3 months notice pay which she doesn't have to work, holiday pay owed and her redundancy money.
As far as we were aware with appurture who we have the IVA with, we are allowed to keep 6 months living expenses out of any redundancy money. So we thought ok then we have the 3 months notice and then 6 months on top for her to find a job hopefully with the same sort of pay, which we know will not be easy!. If she gets a job then we understand that the rest of her redundancy money goes into the IVA which will obviously be hard as we desperately need stuff, such as a new boiler, furniture etc that we haven't been able to replace these past 6 years. She also needs an operation that the NHS will not pay for so we need to stump up £2800 to get it done..
All of the above we will have to cope with, but what is worrying us now is will they count her 3 months notice pay as part of her redundancy? If they do and we only get to keep 3 months redundancy then we will really be up against it if she fails to find a job earning what she does now or even close to it. Even if she finds something like a £1000 pounds less than her current wage we would be in trouble and probably heading back to square one very quickly!
Because of our situation our IVA payments are only £142 a month and we only owe £852!! which in itself is a big sickener as we were only 7 months away from completing.
I just need a little bit of advice if poss so I know whwere I stand for when I make the dreaded phone call to the IVA people.
Unfortunately my wife who is by far the main wage earner as I am involved in a small business has been made redundant. They have given her 3 months notice pay which she doesn't have to work, holiday pay owed and her redundancy money.
As far as we were aware with appurture who we have the IVA with, we are allowed to keep 6 months living expenses out of any redundancy money. So we thought ok then we have the 3 months notice and then 6 months on top for her to find a job hopefully with the same sort of pay, which we know will not be easy!. If she gets a job then we understand that the rest of her redundancy money goes into the IVA which will obviously be hard as we desperately need stuff, such as a new boiler, furniture etc that we haven't been able to replace these past 6 years. She also needs an operation that the NHS will not pay for so we need to stump up £2800 to get it done..
All of the above we will have to cope with, but what is worrying us now is will they count her 3 months notice pay as part of her redundancy? If they do and we only get to keep 3 months redundancy then we will really be up against it if she fails to find a job earning what she does now or even close to it. Even if she finds something like a £1000 pounds less than her current wage we would be in trouble and probably heading back to square one very quickly!
Because of our situation our IVA payments are only £142 a month and we only owe £852!! which in itself is a big sickener as we were only 7 months away from completing.
I just need a little bit of advice if poss so I know whwere I stand for when I make the dreaded phone call to the IVA people.
0
Comments
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Hi there,
I am afraid the answer, as is so often the case with IVA's, is that you will need to check the terms and conditions of what you signed. It may even be possible to discuss ending the IVA earlier by making some kind of lump sum payment (if there is such a small amount left) and that may help you to free up money. But this will be at the discretion of your IVA.
You may also want to prioritise your list of potential large expenses in case you are able to keep/ use any of the redundancy pay beyond the basic day to day living costs. Obviously, your wife's health comes first, and you should also consider the potential aftercare costs, coupled with the impact this will have on her ability to find work etc. I hope you get it all sorted,
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 -
Dont tell them anything about the notice pay, just count it as normal pay, why bother telling them ?
They wont find out other than from you, keep the normal payments going for the next three months, then tell them about the redundancy.
Dont mention redundancy payment, just say shes been made redundant, ask them to accept all payments to date in full and final settlement, thats how mine ended.
If they dont mention redundancy money, then you dont, lots of people are made redundant without any payout.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
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