Does it make a difference starting IVA before or after redundancy

formidablelady

Just had my creditors meeting. They have said that they want to see if hubby gets a job in the next 6 months. If he does and it's the same money as he is on now they want the £17000 and for us to continue with the IVA which they have said they feel we could contribute £409 instead of the £290 calculated. Once hubby loses his job his company car goes also. I was wondering whether we would be able to claims for him to get an old banger and for petrol/ insurance costs or if he would have to claim for bus fare to get to interviews etc. bearing in mind most of the positions similar to his can be miles away. Also would we be in a better position if we waited until the middle of August when we have his redundancy or will this make any difference. In the back of my mind I am aware that the more we pay the more money the IVA company make. Obviously now he has lost his job I am trying to keep as much as I can because it can be difficult to find work. Incidentally he worked his way up to be a manager. He has no qualifications or degrees so the chances of him getting the same kind of salary are slim as they are asking for graduates these days.

Anondebtadvisor

I have seen this from creditors quite a bit lately, they are obviously hoping your HB will get another job earning the same money - which sounds unlikley?

Have they adjourned your meeting?

Did they tell you what areas of your expenditure they have reduced?

Are you saying you have to pay monthly payments for 6 months and if HB has not found a job they will accept the £17k?

If you are offering a F&F IVA the fees will have been set already and will be capped by the creditors - so it is not the case that the IVA will make more money.

It sounds unlikley that your HB will get a job on the same money if so your IVA company will need to hold a variation meeting for the F&F which creditors would probably accept given it was their suggestion to proceed on this basis.

formidablelady

Thank-you for your reply. The meeting has been ajourned for 2 weeks. I am a bit confused myself about whether we will be making payments in the 6 months. They said they have allowed us to keep 6 months salary. Not sue if they do want us to pay wether it will come out of the £17000 or if they expect it from the 6 months salary. I will need to ask IP. But as I said the chances of him getting the same job with a car are practically 0. Whatever job he gets he will need to travel to and he will either need travel costs or money for insurance/petrol if we manage to get an old banger. Which will increase our outgoings and reduce amount we would be able to pay. I can see why they want to gat as much money back as possible but I think they are being very very optimistic. The expenditure they cut back on were £30 a month for 2 of us on contact lenses for me and my hubby and we had a higher clothing allowance I am quite a large lady and have to go to specialist shops for my clothes which are more expensive. I would get them cheaper if I could. I would love to shop in normal shops. To be honest the IP is vague and just keeps asking what we want to do. I am unsure how much we can negotiate.

Anondebtadvisor

Maybe you should contact your company again to get some clarity on what payments they are expecting from you for the 6 months.

I am sure they will have all the answers and can clear this up for you but i suspect they are expecting monthly payments out of the money you have retained from the 6months salary but i could be wrong - creditors are doing strange things these days

formidablelady

They want us to make 6 payments of £409 from the 6 months salary theny have allowed while my HB is looking for work and then £17000 as F & F at the end. If he found a job at then same rate then IVA would continue for 5 years and we would be also paying the £17000. Again my IP has been rather vague. I asked him if we would be in a better position if we agreed the IVA after he got redundancy in 1 month as the new proposal would only have me on it as working!!!! The circumstances are the same but they seem to have more of a say in. The redundancy if we enter agreement before the payment rather than after. If anyone understands more about this please let me know. The other thing is he has no form of transport and in order to go for jobs he will have to travel. How many people are lucky enough to work where they live! He has been looking at positions in Leeds liverpool etc. So he will either need a car or a lot of allowance for bus/ train fares. Could we buy a car prior to entering IVA. I mean a modest one of course. Sorry this is messily written but I am having trouble thinking clearly.

sim11

Let me try and get this straight. You have not been approved yet for an IVA. Is that correct.
If so why not propose a full and final IVA with as much as you can afford, from the redundancy money.
I would put it to your IVA provider, and if they are unwilling to do this. Then i would change provider before it is too late. If you are not yet in a IVA, then the redundancy is not yet captured under the IVA proposal.
Something you should really consider, and you may wish to talk to another company. Before it is too late.