Full and Final Settlement IVA

Froggie007

Hi, I'm new to this site so thankyou in advance for any advice. I am a year into my IVA and have the opportunity to take a voluntary exit package from my employer (civil service). I have applied for it and been accepted but as yet have not received my compensation offer. Once I recieve it, I have two weeks to decide whether to accept it or reject it and if I reject it then I carry on in my current employment. Ive read a few posts about negotiating a full and final settlement before making the decision to accept the redundancy however, I have spent three weeks emailing my IP ( well the admin!) and been given the run around. She has done everything possible to put an obstacle in my way. Firstly, she wanted to know exactly what Ive been offered (despite me explaining very clearly the situation), then she told me not to take the redundancy and just carry on with the IVA. I am due to lose two allowances in the next few months so my available income will reduce. When I told her this, she said they can call a variation meeting when it happens. Ive now resorted to very direct instructions that it is my IVA and I insist that my creditors are approached with my offer. She has today said that she will speak with my IP next week ( week 4!) and see if he thinks its possible but even then, before a variation meeting is called, they want the ins and outs of my offer ( which I still dont have). Are they right in this or can a variation meeting be called with my proposal before I know exactly what I'll get. I have a rough idea what I'll recieve and I've offered more than the amount of the IVA if it ran to term. I accept that the total debt is mine but really dont want to lose the majority of it. Any advice would be really helpful

UpToMyNeckInIt

I see where you are coming from, and you have clearly done some research.

The only potential fly in the ointment, is that your IP will treat this voluntary redundancy, and apply the typical rule which seems to be: You can keep the equivalent of 6-Months net pay, the rest goes into your IVA, and you have to find another job. ...and your IVA continues to term.

As you suggest though, it is not for your case worker to dictate whether or not you can put forward a F&F offer, it is up to your creditors to accept/refuse it.

Only other thing to be aware of is that some IVA companies charge a fee for a variation meeting, which gets tacked onto the end of your IVA, or you pay up-front (otherwise any chancer could demand a meeting is called, even if their offer has a high likelihood of failure). Worth asking the question of your company. IP's don't like wasting their time, but love charging for it.

Good luck, and let us know how this pans out for you.

savingjenny

Realistically your variation proposal is MUCH more likely to be accepted if the IP endorses it. What is the harm in waiting a few weeks until everything is clear?

Froggie007

Thanks for your advice. My IP has now agreed to submit my offer and has asked for a raft of information. Will keep you posted

adyj73

I' two months in to a similar situation. Expecting creditors meeting in January. Seems to take ages....

No one has told me they will be charging me for the variation request!! :O

drslide

Can anyone help with some clarification. I am in a similar position to Froggie 007. When the IP says that the redundancy should go into the IVA does this mean it will be taken off the amount owed to the creditors, or do I have to ask for a meeting and submit the amount as a Full and final Offer.

sorry to ask such a dumb question but I am very confused!!