Redundancy In An Iva

rach7256

we are currently in yr 3 of a 6yr iva paying £290 monthly.my hubby is facing redundancy in appprox 2 months.we have 2 kids and im 6 months pregnant.will the iva take all of his payout from work[or should i keep shtum about the redundancy to debt free direct].we cant remortgage as it is a shared ownership property we half own.we have already had one pay reduction from dfd so im sure they wont reduce our payments further.help please.so unsure what to do.it seems a shame when we are half way through to let it fail now.the thing is we struggle to afford our monthly payments anyway.

Dr_Hook

It's likely that, under the terms of the proposal, the payout would be classed as a windfall and as such payable into the arrangement. However, depending on the amount of the payout, it may be possible to propose paying it into the IVA in full & final settlement.

Your best bet would be to speak to your IP and ask what would happen in your specific circumstances so that you can begin to plan around it - forewarned is forearmed etc, etc.

Keeping schtum about the redundancy is risky - it's highly likely that DFD would notice sooner or later and, if it's gone by the time they pick up on it, it could constitute a material irregularity and cause the arrangement to fail.