Help please!

[jandc]

Hi

I took my ex boyfriend to court recently for money he owed me prior to me entering into my IVA. I won, £4.5k..yay! However my IVA company say they want all of it as it is seen as a winfall. However when i read my contract i do not see how this is classed as a winfall. it is money owed to me, not money just given to me. They let me split 50/50 on my bank charges and i dont really see why this is any different. Its not an inheritance, its money owed. So is there anyone who can help me and advise what to do. i really want to get married next year and me and my boyfriend are really struggling to save up and half this money would most certainly help, so im really trying all angles to keep half! Can anyone tell me the legalities of this?

[luluj]

Unfortunately I believe it is a windfall and therefore should be paid to your IP for the use of your creditors - sorry I know it's not what you want to here, but at the end of the day the creditors are owed this money..

Lulu

[pbeck]

When you entered in to the IVA did you declare the £4,500 owed by your ex-boyfriend as an asset ? You would have been under an obligation to disclose the entirety of your financial circumstances, including any money owed to you.

If you did, and it had been proposed that this be excluded from the IVA, then you can legitimately keep it. If you didn't, then either this would count as a windfall and your Supervisor would be entitled to have it, or worse, they could claim that you misrepresented your circumstances which would be grounds for default and termination of the IVA.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[jandc]

Yeah i do appreciate that, but surely if i didnt take him to court, they would have received nothing so something must be better than nothing for the creditors? and how is this any different to the bank charges which they let me split? How can they do 1 and not the other? it makes no sense, it appears they are making it up as they go along. Can i ask them to provide a something that states this in my contract?

When signing into my IVA i did tell them that a circumstance of me having to go into my IVA was because i had lent my ex money and he had refused to give it back. This is in my contract which went to the court as to why i had fallen on hard times. Obviously it wasnt the only reason but it was one of them and i stated that? Is that what you mean?

[MelanieGiles]

They are not making it up as they go along, but merely complying with the terms of your IVA proposal which they are duty bound to supervise on behalf of you and the creditors. I personally feel that they ought to have taken all of the bank charge refund from you as well under the windfall provisions.

If you incurred any costs as a result of bringing the claim, then these should be allowable - such as unpaid time off work to attend Court.

Sorry - I know this is not what you will want to hear, but windfall provisions are a normal part of IVA contracts and you would have to hand over the money to a Trustee in bankruptcy as well.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jandc]

Thats fine Melanie, i just wanted confirmation that they were doing the right thing. If theres no chance, theres no chance and thats absolutely fine. I will pay them what i owe.

Thanks for all you help.x