question category: IVA

Redundancy and IVA, Do you "have" to pay "All" redundancy money to an IVA?
Submitted on: 8th Jun 2009 by Non-Member | Total Answers: 1

If I was to be made redundant and received a redundancy pacakage of around £14,000 to live on whilst I tried to find work (this would be the only money I had o survive), would I have to pay "ALL" of this money towards my IVA? (IVA reduced total to be paid within 5 years is around £16,000 - total overall before IVA was £25,000.)

Surely redundancy is not classed as a windfall as it is there to help people bridge the gap, pay their rent, bills etc whilst they are not earning and actively seeking work?

Can someone help me with this. My IVA contact is unavailable at the moment but I would like other opinions also. I cannot see anything in my contract (standard terms or otherwise) saying anything about redundancy.

Thanks

Clare

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Re: Redundancy and IVA, Do you "have" to pay "All" ...

Some of the redundancy is going to be classed at windfall but a good IP should certainly allow you living expenses for the time when you are between jobs.

It also changes things if there is an element of the payment for compensation or damages, that shouldn't be touched, but if it is for loss of income then it will count as income.

Different IVA companies have different policies so you do need to speak to your IVA supervisor and read your IVA proposal.

Submitted on: 9th Jun 2009 by Darren Member

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