About Us VA Companies Do I qualify for an IVA? Enter Forum Enter Forum
IVA Forum
IVA Forum
Home | Profile | Register | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 
 IVA Advice Forum
 Redundancy Advice Please
 New Topic  Reply to Topic
 Printer Friendly
Author Previous Topic Topic Next Topic  

sicol
New Member

3 Posts

Posted - 10 Aug 2020 :  18:47:27  Show Profile  Reply with Quote
Hi.
I am in the 6th year of an IVA (due to having equity in my home). My final IVA payment is due by 10th September 2020. I am in arrears as I have paid less having been furloughed for the last four months. I have now been made redundant and am due pay in lieu of notice and redundancy pay. My IVA firm wrote to me last month stating the amount I need to pay to complete my IVA. Do I simply pay this amount or should I inform them of my redundancy? The total amount I will receive will equate to approximately 3 months take home pay. After 6 years I dont want it dragging on further. I already have a job offer all be it on a considerably lower salary . If I inform my IVA firm of my redundancy and inform them of new employment, will they take all of my redundancy and notice pay irrespective of my new salary? Great timing I know....
Thanks in advance for any advice.

IVA Adviser
IVA Expert



809 Posts

Posted - 11 Aug 2020 :  09:14:31  Show Profile  Reply with Quote
Hi sicol,

Sorry to hear about your redundancy.

You should inform your IVA supervisor about your redundancy and the payment you will receive.

They'll advise you whether any of the redundancy pay is due to your IVA and hopefully identify a way to bring it to a prompt closure now.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      
Go to Top of Page

sicol
New Member

3 Posts

Posted - 11 Aug 2020 :  10:06:41  Show Profile  Reply with Quote
Thank you for your response.
I have never been happy with my IVA company. If I declare my redundancy and new position I would expect them to demand all redundancy payments since from my experience, the more they can extract from me, the more they make in fees. They have never given me any impression that they are there to help and advise me, all I am to them is an income stream. With that in mind, I feel I would be better off turning down the job offer that I have received and searching for something with a better salary whilst retaining my redundancy money. I find it incredible that despite having a reduced income for the last 6 months, I am still expected to settle the full amount of payments due to my IVA and now that I have been made redundant, I will likely lose that money to the IVA as well. I wish with hindsight that I had dealt with my creditors myself rather than entering into an IVA. I believe I was misinformed at a time when I was very vulnerable.
Go to Top of Page

IVA Adviser
IVA Expert



809 Posts

Posted - 12 Aug 2020 :  09:04:09  Show Profile  Reply with Quote
Hi sicol,

I sympathise with your unhappiness with your IVA provider, but declaring the receipt of a lump sum isn't optional.

Failing to do so could result in serious consequences for you at a time when it might be possible to get the IVA finished and move on.

It's common to allow people to retain at least part of a redundancy payment to tide them over while they look for new work.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      
Go to Top of Page

sicol
New Member

3 Posts

Posted - 13 Aug 2020 :  14:58:04  Show Profile  Reply with Quote
Thanks.
So, am I right in thinking this is the most likely outcome?
My IP will likely take the full amount of my redundancy money, notice pay and holiday pay minus 2 weeks for my break in employment. They will then expect me to continue paying off the arrears that have built up whilst furloughed. However, because my new salary is less than my previous salary minus my original monthly IVA payment, a variation will be required and a new monthly figure calculated. Or, they could agree that the redundancy monies are sufficient to complete the IVA since my income will be too low to be able to pay anything other than a token amount.
Whatever the outcome there will be a lot of paperwork to supply and hoops to jump through for a few more months yet.
Thanks for your advice.

Go to Top of Page

IVA Adviser
IVA Expert



809 Posts

Posted - 13 Aug 2020 :  17:48:28  Show Profile  Reply with Quote
It's hard from my position to say what the most likely outcome is sicol.

Your IP needs to consider what's fair to your creditors (and to you) in line with the original agreement and your change in situation.

With a reduction in income it's certainly possible that this change could help to get the IVA finished.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      
Go to Top of Page
  Previous Topic Topic Next Topic  
 New Topic  Reply to Topic
 Printer Friendly
Jump To:
IVA Forum © 2011 - 2020 www.ivaadviceforum.co.uk Go To Top Of Page
Snitz Forums 2000
(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.
Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.
IVA Advice Forum, Cardiff House, Priority Business Park, Barry, CF63 2AW. Tel: 02920 435423.