IVA and redundancy

runningfool

Sluggy wrote: »

Hi,

If the IVA companies didn’t say this, just imagine how this rule could be miss-interpreted to the more unscrupulous people out there.

Imagine someone who takes or is forced to take redundancy who is offered another position immediately.

If that person was allowed to keep what ever redundancy they received there would be thousands being used for other purposes, instead of being paid back to their creditors.

It’s simple plain logic to me. If you get 6 months worth of salary, use that to live on. If you get a job sooner, there will be a surplus and you will be expected to pay that into your IVA. Horrible but true.

I’ve just had a 2K bonus at work (for the first time in 3 years) and had to pay over £800 into my IVA, four times my monthly payment. I’m not happy about it but they are the rules I agreed to.

So far I have found My IVA Company totally inflexible on any payments owed to them. Even a massive car repair bill just before Christmas that wiped out most of our Car, Contingency and Gift Fund wasn’t enough to persuade my Case Officer to let me keep their portion of the additional overtime I’d earned.

They just tow the line, it seems unfair. But rules are rules.

I absolutely agree I promise - and I am a stickler for rules myself if I am honest - too scared not to be.

My point is that my redundancy, as I have said, is nowhere near that amount, far from it, and yet they are now saying I may be liable if I get a job. My point is that none of that is stated in my contract (and they could have very easily included it) therefore they are making up rules when they should be trying to help me. Isn't that where my whole first year of payments went - on their fee? Let's face it, they don't do it purely out of the goodness of their hearts.

I also didn't know about the 10% thing if I get a better salary, when I wrote my first post - although someone else here is not even getting that.

My debt, mainly to payday loans to try and live on - not live it up - is a drop in the ocean to my creditors and I was trying to sort it all out myself with them when I finally admitted defeat due to stress and went down the IVA route.

I have done all that I can to give them back at least something - I could have declared myself bankrupt and they would have nothing, but I wanted to do the right thing.

I have no problem paying my fair share - I already do and also owe my family money, as things always crop up over and above what you are left with to 'live on'. My redundancy will go some way to paying them back - as well as getting a cheap second hand car which I need, having moved out of a city to the country to save money.

I am doing all I can and for my IVA company to then try and change the rules - as stated in their contract - is stressful and worrying.

Bottom line, they state if redundancy is more than six months net salary we are liable - my redundancy is not even close to that and they don't even mention what happens if you find work. Redundancy is not 'just' to live on - it is compensation for losing your job, the mental stress, to help you afford to travel to interviews, purchase clothing that may be required for same etc.

They are now changing the rules - and that cannot be right.

runningfool

runningfool wrote: »

I absolutely agree I promise - and I am a stickler for rules myself if I am honest - too scared not to be.

My point is that my redundancy, as I have said, is nowhere near that amount, far from it, and yet they are now saying I may be liable if I get a job. My point is that none of that is stated in my contract (and they could have very easily included it) therefore they are making up rules when they should be trying to help me. Isn't that where my whole first year of payments went - on their fee? Let's face it, they don't do it purely out of the goodness of their hearts.

I also didn't know about the 10% thing if I get a better salary, when I wrote my first post - although someone else here is not even getting that.

My debt, mainly to payday loans to try and live on - not live it up - is a drop in the ocean to my creditors and I was trying to sort it all out myself with them when I finally admitted defeat due to stress and went down the IVA route.

I have done all that I can to give them back at least something - I could have declared myself bankrupt and they would have nothing, but I wanted to do the right thing.

I have no problem paying my fair share - I already do and also owe my family money, as things always crop up over and above what you are left with to 'live on'. My redundancy will go some way to paying them back - as well as getting a cheap second hand car which I need, having moved out of a city to the country to save money.

I am doing all I can and for my IVA company to then try and change the rules - as stated in their contract - is stressful and worrying.

Bottom line, they state if redundancy is more than six months net salary we are liable - my redundancy is not even close to that and they don't even mention what happens if you find work. Redundancy is not 'just' to live on - it is compensation for losing your job, the mental stress, to help you afford to travel to interviews, purchase clothing that may be required for same etc.

They are now changing the rules - and that cannot be right.

Just an update. I stood my ground and argued my case again and again with them. Eventually it went back to another meeting with my creditors. Due to the vagueness in the contract - plus the fact that the redundancy was spent on essentials and my clear lack of assets - it was all accepted. My plan is now amended to show my new salary etc. and all is well.

You cannot imagine the relief and I am so glad I stuck to what I knew was right.

longtermplanner

Excellent news! If your IVA company is inflexible and trying to stick to the letter of the contract, then they should expect to have to do the same themselves. Well done you. I hope the rest of your IVA passes without incident.

UpToMyNeckInIt

Great news RF, and thanks for the updat!!!