Redundancy while in IVA

DrowninginDebt

Hi, I am now 3 years into an IVA and being made redundant soon. The wording in my agreement is so ambiguous ("any redundancy payment") and hope they are only going to look at the SRP and not the whole amount I receive.

So my question is - are the IVA company allowed to insist my payments in lieu of notice and holiday pay be included when calculating how much I must give them, or just the statutory redundancy pay amount?
Grateful for any clarity on this!

UpToMyNeckInIt

Sorry to hear about your redundancy.

If I were in your shoes, I would be tempted not to hand anything over until I had found another job (don't think your IVA company would reasonably expect anything else) - you will need that lump sum to live off in the interim.

Alternatively as you are 3-Years into the IVA, and if you believe that there is little possibility of finding comparable-paid work any time soon, you could propose offering your redundancy sum in 'full and final settlement' of your IVA.

Best seek clarification from your IP (not an ill-informed case-handler) for a definitive answer.

Good luck.

RuthnJasper

Bad luck OP; sorry to hear of what's happened. Do give your IVA provider a call as soon as you can; you might be able to sort out reduced payments for a while, or a payment break. As you're three years in, I'd say you stood a better chance of being able to negotiate than if you were, say, three months in. It is in their interests for the IVA not to fail as well as yours.

I sincerely wish you happier times ahead and hope that it all works out for you. x

DrowninginDebt

Hi and thanks for the speedy response!
I did speak with my case-handler when I first received notice of being at risk and calculated I would received approximately £12,500.00, made up of Statutory Redundancy Pay of £7k, Notice Pay of £4600k and Holiday Pay of £1k.
I was told I could keep the equivalent of 6 months salary (£7200.00) and they would immediately take £4700 as an extra payment into my IVA which would continue to term.
When I asked how much to settle the IVA, I was told I could offer a further £3k (out of the £7200 I would be allowed keep) however this would mean I would be paying nearly £8k in total.
I insisted she checked with her supervisor, which she says she did, and I am grateful the IVA has allowed me to clear some debt, but I cannot believe it would result in two thirds of my redundancy pay to clear the IVA . Do these figures seem fair?
Apologies for misunderstanding but who is the IP (IVA Provider?).
Thanks for your help!

longtermplanner

DrowninginDebt wrote: »

I insisted she checked with her supervisor, which she says she did, and I am grateful the IVA has allowed me to clear some debt, but I cannot believe it would result in two thirds of my redundancy pay to clear the IVA . Do these figures seem fair?!

It is hard for us to comment on that without knowing what monthly payments you were making, whether you have a house which potentially has equity in it and how likely you are to be able to find another job.

jamenglish

Hello Everyone,

My mum is being made redundant by the end of the month. She has a lil over a year left on her IVA. She'll only be getting around 7000 redundancy pay out and shes 61 so near retirement highly unlikely to get another job. Payplan are saying the 4000 is income so she still has to continue her monthly payments. They are no help whatsoever. Her total payments left add up to around 4000. Any advice on what she should do, eg offer a final settle etc

longtermplanner

Does she have a house with equity in it? If no, and her remainiung payments add up to £4000, then she can either offer £4,000 as a settlement now (they aren't likely to settle for less as she has just received this redundancy pay) or just settle down and make the next years payments. The latter is obviously simpler which is probably why Payplan are suggesting it.

If she has a house with equity then there is a more of a problem. Obviously she won't be able to get a remortgage, in which case it would be normal for her to have to pay another 12 months payments.