IVA and redundancy

Mutabilisrose

We are 4 years and 4 months into our IVA. The original total debt was £52000. My husband and I have separate IVAs of £280 and £310 a month. My husband is about to be made redundant and should receive around £50000. I understand this is payable in full to the IVA bar 6 months of "salary". I am not sure where we stand. Could this clear the debt if we could pay all of it in or will the extra charges be way over this. I think the creditors got back 22p in the pound. Another thing I did wonder is wether he could just pay off his Iva and potentially get to keep some of the redundancy. To complicate matters I am in very poor health. I work in the NHS and can retire at 55. I have been so unwell though I was thinking of going as soon as I can which would be at around 54. I will get a lump sum of between £42000 and £72000 depending on which monthly pension I took. Any advice greatly appreciated.

PrettyKittyKat

Are your IVA's linked?

Do you have any joint debts on your IVA's?

Your husband will be expected to pay 100p in the £ if he can. So if keeping 6 months salary means he has enough money to pay 100P in the £ then he will do and his IVA will finish. If 100p in the £ isn't much more than what he needs to pay in you may consider using the 6 months worth he is able to keep to pay it off - this is his decision.

If you have joint debts then your husband paying 100p in the will mean that the debts are paid in full your IVA debt amounts will be affected, as they will reduce. Depending on how many debts this leaves you with, which means that your 100p in the £ figure will be reduced.

I would recommend asking your IP for the 100p in the £ figure for your husbands IVA, and then asking what yours would be if any joint debts were paid in full via your husbands IVA. This will leave you with the appropriate information to make a decision on your retirement.

Without seeing your exact payments/debts/fees I can only give general advice.

Mutabilisrose

Hi Pretty Kitty

Thanks for the reply. My husbands debts were £22759, mine £27222 and joint £2375. I read somewhere though that it’s not just the original amount. They add on interest and fees which can be quite hefty. Unless I misunderstood. Ideally I wish I could make this payment a full and final for both. I don’t know if they would accept it though. His salary is about £2200 after tax.

Mutabilisrose

Oh and the IVAs are seperate

Craig1981

check your original agreement
this will break down the cost of the IVA (usually around £7-10k on each IVA). dependant on the IP, these are either collected first years of payments, or gradual on your payments made.

my opinion = the costs will stand and need to be cleared. So, in your husbands case £280x 52 months, total paid £14560. original debt £22579 plus costs, so would leave around £16k to £18k to be paid to settle his IVA, excluding the joint amount (unsure how this has been agreed)

FYI - yours to settle would be around £19k including costs

PrettyKittyKat

Based upon what you have said you have a really good chance of paying 100p in the £ on both IVAs. Definitely give your IVA company a call and ask for the 100p in the £ figure for both IVAs. Taking in to account that there is a joint debt of £2375. Let us know how you get on

Mutabilisrose

Thank-you both for your replies. I will let you know what happens.