redundancy payment while in an IVA

melly50

hi there

do you have to let your creditors and insolvency practitioner know if your getting a redundancy payment while still paying into an IVA

cheers

rabbit_burrow

Yes. It may be classed as a 'windfall' which has to go to the creditors on top of your original iva amount so that the creditors get more of there money they lent you.

It's always best to tell your IP, breaching the T&C's could result in an IVA failure.

If you can prove that you need that payment for essentials then your IP will let you have it. But if you can't, the creditors are entitled to it (they are entitled to 100% of their money until the IVA is completed at the agreed reduced amount).

Sorry.

john_the_hornet

Hi Melly50.

I am sorry to say Rabbit-barrow is giving you false info.
most IVA companys if not all say you can keep 6 months pay packet payments
and the rest must be paid into the IVA.
Say you earn £1500 a month and get a redunancy payment of £20,000.
You can keep £9000 to live on for 6 months and the £11,000 must be paid into you IVA.
PLEASE NOTE IN THAT 6 MONTH PERIOD ALL IVA PAYMENTS MUST ALSO BE PAID..
If you are still out of work after the 6 months you can ask your IP for a payment break of up to 6 months...
if you only have a short time left say under 8 months left on your IVA your IP could ask your crediters to take your redunancy as full payment and close your IVA account
..
Please do not hide this payment as this will cause your IVA to fail please speak to your IP.

Good luck for the future:):):)

FiatFan_2

john_the_hornet wrote: »

Hi Melly50.

I am sorry to say Rabbit-barrow is giving you false info.
most IVA companys if not all say you can keep 6 months pay packet payments
and the rest must be paid into the IVA.
Say you earn £1500 a month and get a redunancy payment of £20,000.
You can keep £9000 to live on for 6 months and the £11,000 must be paid into you IVA.
PLEASE NOTE IN THAT 6 MONTH PERIOD ALL IVA PAYMENTS MUST ALSO BE PAID..
If you are still out of work after the 6 months you can ask your IP for a payment break of up to 6 months...
if you only have a short time left say under 8 months left on your IVA your IP could ask your crediters to take your redunancy as full payment and close your IVA account
..
Please do not hide this payment as this will cause your IVA to fail please speak to your IP.

Good luck for the future:):):)

^^ Yeah that, I spoke to my IP last week about the same thing as I'm either immanently redundant or there are plans to offer me alternative work which gets round paying me redundancy.

Personally I get 8wks redundancy which means al have 2 months before we'd have to consider payment breaks etc