 |
Redundancy pay and my IVA - do I have to tell them about it? |
Submitted on: 27th Sep 2010 by Non-Member | Total Answers: 1
I have just entered year 5 of my IVA (final year) and just submitted my bank statements, payslips and P60 for last year. I have just found out that I am getting made redundant and am being paid a considerable amout of money, a couple of grand more than what I owe on my IVA. I rang my supervisor to see if I could repay my IVA (full and final settlement), she told me that its not like a loan, I can't just repay what I have left to pay therefore I will need to declare what I am getting and technically the creditors can ask for the whole lot of it. I am not happy about this as I have never faultered on my IVA once in the 4 years I've had it. I would be better off sticking to my agreement for the next year.
If I just dont tell them about my redundancy pay and carry on paying my repayments for my final year and just tell them I got a new job can they find out about this at all?? Surely being my final year I won't have to provide any more bank statements, payslips or P60's?
Re: Redundancy pay and my IVA - do I have to tell them about it?
Unfortunately, whether or not you need to forfeit your redundancy pay depends upon the terms of your IVA. As you may be aware, an IVA is a voluntary agreement between you and your creditors. Often an IVA is seen as an alternative to bankruptcy. The terms of an IVA usually involve creditors agreeing to receive only a percentage of the amount owed. In return they often insist that if a debtor comes into an unexpected windfall, or receives an increase in income, that those funds are directed towards the IVA. The creditors may not require the whole of the redundancy pay, but you are obliged by law to inform them of any changes in your circumstances. I would check the terms of your IVA and contact a solicitor or money advisor if you do not think the IVA requires you to do this.
Post new comment