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:
Posting on here as well as the Debt Free Wanabee thread to try an attract as many replies as possible to hopefully get an answer.

Jennifer_Jane

Sorry cannot help with anything official. But surely the redundancy pay is 'future income' rather than a windfall?

Hope it works out for you.

Jen
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MIVAA

There is very little you can do.

Your IVA offered you the opportunity to reduce your repayments to your debt because you could no longer afford them, and by accepting your IVA your creditors in turn accepted that you would probably not be able to repay the whole debt within the term.

But this came with the caveat that if they agreed to accept the IVA you in turn would give them the legally binding assurance that you would repay the whole amount should your circumstances improve enough for you to be able to afford to.

Now that you have the means to repay there is no choice in the matter I'm afraid.

Without knowing your exact circumstances it is very difficult to offer advice, but perhaps you could argue the case for being allowed to keep the equivalent of 6 - 9 months income as a minimum amount just to enable you to find your next position. That is of course assuming that you do not already have that much left in hand after the debt is settled.

Just a thought, but I hope it helps you.

MIVAA

Nargleblast

Remember if you pay off the IVA to finish it then that's a few hundred a month you will no longer have to pay out! Plus of course not having to pay them 50% of surplus income every month...why don't you do a statement of Affairs (use the SOA calculator on this site) to give you an idea of the picture assuming no payments for IVAs at all, and see how it will look? You can do an illustration of what your financial picture would be if you kept no redundancy money at all, then one showing a portion of the redundancy money kept, and see how they compare. Then go to your IP and negotiate a fair deal with them. If you have your figures down in black and white it will back up your case for keeping the equivalent of a few month's wages. Good luck.