A redundancy while you are bound by an IVA can be worrying. It simply refers to you losing your job during your time period on an individual voluntary arrangement (IVA). For obvious reasons, this is a worrying aspect. Bring fired is never pleasant. It can happen to anyone, and affects many aspects of life. Especially on an IVA where financial stability is non-negotiable, redundancy is a looming threat.
Instead of worrying about it, you should consult experts to know more about redundancy as well as any other concerns you might have. Your IVA provider will support you through any upheaval. However, there are steps you can take to give yourself some clarity over the situation, and make the change in circumstances easier to deal with.
Inform Your IVA Provider Immediately
Bad news doesn’t get better sitting under a rock. Don’t get anxious over your IVA provider’s reactions. Inform them to handle the situation. If you have been awarded any redundancy funds, you’re eligible to use enough of them for household bills and your IVA payments. Meanwhile, you can keep looking for a job. The usual terms of IVA allow you to keep about six months’ pay from any redundancy settlement. If you find work again within six months period, more redundancy funds might be paid into your IVA.
Know Your Rights
If you receive any threatening debt enforcement action, such as from bailiffs or about a County Court judgment (CCJ), contact your IVA supervisor as soon as possible.
Update Your Budget
Find new ways to save money on your living costs and household bills until you get a new job. For example:
- Switch to a cheaper energy supplier
- Switch to a cheaper broadband contract
- Buy at a cheaper supermarket
- Take a break from your gym membership
- Stack up on essentials for cheap and easy meals
Do not take out credit without speaking to your IVA provider first, even in case of fund shortage for food.
IVA after Redundancy
If you are unable to afford IVA after your redundancy is solved, you’ll be given the option to explore other debt solutions by your supervisor. Consider the benefits or risks with other debt solutions carefully before deciding what to do next.