redundancy (windfall) surrender, fair?

IVA_DEBTER

I am currently in an IVA with my partner (wife). I was recently made redundant after 25 years so got quite a good pay off, problem is the IVA practitioner wants me to pay back 100% plus statutory interest, leaving us with very little left. I do not have a job currently and my wife is on £6 an hour. Can anybody provide a better solution. I have thought about failing the IVA and making an offer to the debters direct but I've been told that they may have been told about my "windfall" and demand possibly even more money off me or possibly file for bankruptcy against me. :mad:

RAS

Sadly, as I understand it this is quite posssible. it is one of the reasons we do not tend to support IVAs on here. Do post on the IVA and BR forums.

If you went BR, the OR would take most of your redundancy payment but I think you retain the statuatory payments but lose some or all of the additional payments.

Ask on the BR forum.

pepe2008

IVA_DEBTER wrote: »

I am currently in an IVA with my partner (wife). I was recently made redundant after 25 years so got quite a good pay off, problem is the IVA practitioner wants me to pay back 100% plus statutory interest, leaving us with very little left. I do not have a job currently and my wife is on £6 an hour. Can anybody provide a better solution. I have thought about failing the IVA and making an offer to the debters direct but I've been told that they may have been told about my "windfall" and demand possibly even more money off me or possibly file for bankruptcy against me. :mad:

No expert. Told....by who?
Dont forget that the IVA practitioner is in it for their own benefit, not yours.
How long ago was the IVA set up?
Was it right for you? (i.e, Do you have a property to protect?)
Did they investigate your situation fully?...Or did they just SELL you the IVA?

Somebody will know, but good luck with sorting it out. I'm sure that, as you are currently jobless with no surety of when you may be employed again, then they are not entitled to just take the redundancy from you. It is there as compensation for losing your job and to help you meet your commitments.

Take proper advice, dont believe the IVA Co, any idiot can sell an IVA!

IVA_DEBTER

Thanks Pepe2008 for your reply. I have been advised that the IVA company, the one with the doves, are likely to have divulged my circumstances already as they had to check with them to calculate how much they wanted off me. Did speak to CAB but they said to either pay it off or expect the worst.

pepe2008

I take it that you DO have a Mortgage?

Charco_2

Jebus the IVA bashers on here are hard to listen to... give it a rest guys could ye?

Speak to your IP - despite what some idiot has written above, your IP will have an interest in seeing your IVA succeed.

Yes your redundancy has to go towards your IVA BUT don't just pay it in willy nilly. Gimme a second and I'll come back to you about it (I dont work for the guys with the doves!)

pepe2008

But I still wouldn't touch an IVA with the s***ty end of a stick!

Definitely do NOT do anything without supporting paperwork! Half the people selling the things are only one step up from a Debt Collector.

Charco_2

Half? Really? 50% exactly? what is it you're basing this fact on other than your negativity towards IVAs? I bet the debt charities call centres all have FAR better trained staff! :rolleyes:
No-one could have foreseen when the IVA started that the debtors situation would change so much. However just like no-one goes out to accrue massively unmanagable debt, no-one goes out to start an IVA that will ultimately fail - but things happen and you just have to roll with the punches!

IVA DEBTER: It's your proposal at the end of the day so speak to your IP and make him work for you - you do have options (some of which will depend on you age, your homelife, how long you've been in the IVA and how much your debts are for!)

You certainly dont want to be forking out your redundancy this month only to be told your IVA is failing anyway next month!

First things first, it sounds like your redundancy was quite substantial if is going to cover all of your outstanding debts plus the statutory interest. However, with you now out of work and possibly living off no income or perhaps pensions etc your income has fallen significantly. Your mortgage payments for example will now no-longer be affordable at your current income...

You'll need to speak to your IP and instead of them telling you, you tell them! You want a variation held (it's your creditors meeting all over again to agree or reject a change to the proposal). In the variation, you want your creditors to agree to write off any statutory interest accrued since the beginning of your IVA (your redundancy presumably covers all off this which is why it has been mentioned). You also want to be able to retain some of the money from your redundancy to reduce the balance on your mortgage or for other living costs as it is unlikely that you will be able to get a job any time soon.

Is this of any help - perhaps you dont have a mortgage and i'm barking up the wrong tree with my examples but the theory is the same:

The variation is basically that you would like to settle the IVA early with a lump sum payment but that despite your redundancy, you cannot really afford to pay 100p in the £ as you have living costs to think of too.

pepe2008

Charco wrote: »

Half? Really? 50% exactly? what is it you're basing this fact on other than your negativity towards IVAs? I bet the debt charities call centres all have FAR better trained staff! :rolleyes:
No-one could have foreseen when the IVA started that the debtors situation would change so much. However just like no-one goes out to accrue massively unmanagable debt, no-one goes out to start an IVA that will ultimately fail - but things happen and you just have to roll with the punches!

IVA DEBTER: It's your proposal at the end of the day so speak to your IP and make him work for you - you do have options (some of which will depend on you age, your homelife, how long you've been in the IVA and how much your debts are for!)

You certainly dont want to be forking out your redundancy this month only to be told your IVA is failing anyway next month!

First things first, it sounds like your redundancy was quite substantial if is going to cover all of your outstanding debts plus the statutory interest. However, with you now out of work and possibly living off no income or perhaps pensions etc your income has fallen significantly. Your mortgage payments for example will now no-longer be affordable at your current income...

You'll need to speak to your IP and instead of them telling you, you tell them! You want a variation held (it's your creditors meeting all over again to agree or reject a change to the proposal). In the variation, you want your creditors to agree to write off any statutory interest accrued since the beginning of your IVA (your redundancy presumably covers all off this which is why it has been mentioned). You also want to be able to retain some of the money from your redundancy to reduce the balance on your mortgage or for other living costs as it is unlikely that you will be able to get a job any time soon.

Is this of any help - perhaps you dont have a mortgage and i'm barking up the wrong tree with my examples but the theory is the same:

The variation is basically that you would like to settle the IVA early with a lump sum payment but that despite your redundancy, you cannot really afford to pay 100p in the £ as you have living costs to think of too.

Dont be so pedantic!

Thanks for agreeing with me by the way.
The redundancy is there for the benefit of the recipient as compensation for losing his/her job.
It is there to assist with the essential costs of living.
It is not definite when the recipient will once again be in employment so the best ( and only ) advice is for it to be retained by the recipient and used to meet day-to-day commitments.( These may include an IVA monthly payment)
The existence of the redundancy payment and the loss of the job need to be advised to the IP.
Dont do anything without supporting, proveable, paperwork.
Dont be led by the nose by an IP looking to line their own pockets quicker than they were expecting!

Charco_2

Dont let your negativity get in the way of the facts.

The OP undertook to pay of their debts as best they could under the protection of an IVA and while it may be unfortunate that they have suddenly received a lump sum DURING the proposal rather than AFTER, this does need to be addressed!

Check with the IP, usually you would have six months to remedy the situation (ie get a job and bring some stability back to your home life then address the debts when you have more security - not spend the lump sum like Brewsters millions with nothing to show for it and stick two fingers up to the world).

Ultimately it depends on the amount of debt, the size of the redundancy and your everyday living costs. It MAY be that avoiding the variation and IPs costs to pay your creditors directly provided they agree to forego the Statutory Interest is your best option but i would say that this is unlikely!

Yip, in an ideal world:
"Thanks for agreeing with me by the way.
The redundancy is there for the benefit of the recipient as compensation for losing his/her job.
It is there to assist with the essential costs of living."
However IVA or not, the OP would have to deal with their debts and this Lump sum is a good opportunity to do just that... As i said, dont let your negativity towards IVAs get in the way of offering good advice!!!