IVA Redundancy and Full and Final

Pomme

Hi all,

My husband is being made redundant at the end of March nd I'm due to strt maternity leave in May.
We're 12 months into the IVA and our original monthly contirbutions were £582, these increased after 7 months to £676. With additional payments made from windfalls we've paid approx £10,000 in the first year.
The original debt was 48k.
Anyway my main reason for asking your advice is that I'm pregnant and originally we were hoping to take a 6 month payment break while on maternity and then continue with the IVA but unfortunately my husbands redundancy is making our future income uncertain. Along with increased nursery fees. He will receive approx £16k in redundancy and although I know he can keep 6 months worth while looking for a job and pay the difference into IVA we were wondering if a full and final might be a good option?

If it's approved we have £400 mortgage protection and job seekers allowance along with my small part time wage we could struggle by on, if it's not approved and he doesn't find a job I fear the IVA will fail completely once the payment break is over as theres no way we'll be able to pay £676 a month unless he gets a job with eactly the same pay - v. unlikely at the moment!
On another note, if it's put forward and rejected and we think the IVA will fail anyway, should we keep the money to cover bankruptcy instead of handing it over any difference, for our IVA to fail anyway - we would 100% rather a full and final to bankruptcy.

Your thoughts would be most welcome - I have spoken to our IP who asked us to put it in writing.

Also should we ask for a payment break from March in case the meetings held and accepted in order that we don't pay the monthly contribution that month, so as to cover the timing difference in receiving job seekers etc as we're offering the full redundancy amount.

Thanks again, I so appreciate your advice.

darlyn

Hi Pomme,

Welcome to MSE.

You say the original debt was £48k and you have paid in £10k so far. Are you suggesting paying in the whole £16k redundancy as a F&F? If you are, that puts you at paying £26k out of £48k - the F&F really depends on how close you'll get to paying out the dividends in the original IVA agreement.
For example, if you IVA says it expects to pay 50p in the pound, and your offer gets it to 47p in the pound - chances are it will be accepted. If, however, your offer gets it to 30p in the pound it may well be rejected. Does that make sense?

When you make a F&F offer, you can in the case of a 'gift' of money state that the offer will be retracted if it's not accepted (i.e. you wont be paying a penny of it in!) I assume that you can do the same with the redundancy - you offer to pay the whole amount in, but will keep the 6-months-worth if the offer is rejected.