IVA finished but worried about windfall clause.

Lola_Bellini

Hi

Our IVA final payment was end of November but it hasn't been closed by the Insolvency Practitioner yet. I'm to be made redundant with a sizeable payout on 21st December. Can this be taken from me?

I look forward to any feedback.

Thanks
Lola

FoggyBrain_2

In theory, until you get your certificate of completion, yes! In normal circumstances this could take several months. If yours is one of the companies delaying because of recent VAT changes, even longer.

kns_2

I think that you will find that they can to be sure just ask your IP.

james32_uk

I wouldnt declare it. The worst that can happen is they find out and ask you for the money. The chances of them finding out must be very slim.

FoggyBrain_2

I would imagine that you have already signed your final windfall (or lack of) declaration .. so would your IP ask ??

Personally, and although technically incorrect, I am of the opinion that, once you have "done your time" and fulfilled your obligations for the required 60 / 72 months that should be it. Why should you suffer because your IP ( for whatever reason) delays issuing that final bit of paper ??

Also ... it's not as though the end of the IVA comes as a surprise. Surely it's not impossible for the IP to get everything ready for that final day ? Why can't they write to the creditors 3 month before the final payment date and tell them if they don't get their claims in before that date they lose the right to the money?

Lola_Bellini

james32_uk wrote: »

I wouldnt declare it. The worst that can happen is they find out and ask you for the money. The chances of them finding out must be very slim.

Thanks for the info guys.

Our bank account is a 'managed' account which is linked to the IVA provider. I couldn't imagine a large sum of money going unnoticed. I don't think I can open another account with another bank until after the IVA is closed either.

I've asked my employers if they can pay my redundancy by cheque so I can just keep it to one side until things are finalised, I've also asked if I can work my notice period which will take me til February! That might give the IVA people time to get their paperwork done.

I went through the fine print last night and couldn't even find the windfall clause. I know there will be one, just couldn't see it.

I know its my debt that has caused me to get into this state but I've worked so hard the last five years and would be gutted if at the end of it I'd lost my job and my redundancy... which would mean loss of the house.

FoggyBrain_2

Windfalls might be referred to as "after acquired assets". If you are extremely lucky, it might have been overlooked. I know of one person whose IVA said nothing about overtime payments being paid in !

Co-op will open a Cashminder account for people in and fresh out of IVA's.

It's not a case of "Old Habits" Tescobabe. The IVA has run it's course and should finish with the last payment. Due to the VAT hassle some Firms are keeping clients hanging in limbo for over 6 months, which is unjust!

Lola_Bellini

Ahh thanks FoggyBrain, I'll have a look tonight to see what the 'after acquired assets' are. I've been doing quite a bit of googling as you can imagine and some sites/forums say that redundancy isn't counted but some say that it is. My gut feeling is that it IS counted but as I'm at the very end, haven't missed an IVA monthly payment then it seems a horrible final curve ball that's being thrown at me. I've been with my company for 12 years and the job has always previously been perceived as secure.

silvdo

HI,

I know my IVA via payplan has a clause which explicitly mentions redundancy saying that i have to tell them within 14 days of being told and that i am then able to keep the equivilent of 6 months sallary, Any excess will then go to creditors.

Alos you should be able to get a basic bankaccount from a number of providers, i'd look in to that in any case as once your IVA is compleated and finalised you don't want to be tied to an existing managed account. Take your financial freedom back.

The other thing you could talk to your company about is rather than aying you in monetary terms that they pay for training or equipement to help you post redundancy, I don't know if your think about an alternative carrea or maybe starting a business, but if you are this coudl be a useful way to maximise what you can keep.

Im a Union rep at the moment and have knolwedge of all sorts of agreements, but its important to get them checked out by a lawer and hopfully your Employer will pay for this, they should in most cases. You may be able to get tehm to agree to stagger payments so that you get some money now but some in 3\6 months. or to pay it in training vouchers or some other non monetary compensation.

shelene

Hi Lola,

any chance of an update of how you got on??? I might be in a very similiar position myself, may possibly get a redundancy payment after i have paid my last payment but the time scale will be pretty close :-/

Cant believe that once the IVA has been fully agreed and settled that any money after this point may be taken, it makes me sick just thinking about it...

how long after your final payment do they send you the 'windfall' form to complete and return??? I havent recieved any paperwork......

Anyone else have suggestions on this or if there has been any connected cases/experiences or answers??

Thanks in advance

angel_rainbow

I'd open another account - plenty offer basic bank accounts for people with adverse credit. I am of the opinion that it isn't our fault that certificates are not being issued and before this HMRC issue reared its head the completion certificate would have been issued and the windfall all yours to keep.