IVA - finishing early due to a windfall

[CHILLIMAIDEN]

Hello
I am new on this site and have been in a IVA for nearly five years (finishing in NOV) and my husband has a six year to complete. Due to unfortunate circumstances we have be given a windfall and I know we have to declare this to our IP, but what I would like to confirm is do we have to pay 100% of what we owe our creditors or do we only pay back what we have agreed with our creditors (mine 75%) husband (46%). Also would the supervisor charge us more for settleing early or would he take his normal yearly fee? Also do we have to give all our windfall to the supervisor as this is a rather large sum of money - far more than the 100% we owe to the creditors.

the windfall will be in my husbands name not mine and we also have separate bank accounts, Would I still be able to let mine run the final three months or does my husband have to clear my debt?

Thank you
Chilli

[MelanieGiles]

Hi chillimaiden and welcome to the forum

You generally have to pay your creditors in full from windfall monies, together with all outstanding costs of the arrangement. The supervisor will not charge you more fees for settling early, indeed your husband ought to get a saving for his final year fee.

Put the money on a high earning deposit account for now, and ask the supervisor for a settlement figure. As the windfall is your husband's money, then he does not need to give you any of it - but I am sure that he will! As the windfall is not yours, you can offer a lower figure, but I would keep it at the level of the dividend you origianlly pledged.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[CHILLIMAIDEN]

Thanks for your quick reply we can now sleep [:)]

[lily]

good luck with the conclusion of your IVA Chilli, I am really sorry if its due to the loss of a loved one. I feel for you.

lily

[CHILLIMAIDEN]

I only have 3 months left to pay on mine which is 3 x £346.83
so if i offer £1040.49 this would settle it for me??

[MelanieGiles]

Yes - I am sure that this would bring early closure for you.

And may I also offer my condolences on your sad loss. I am sure that you will put the remaining money to good use, having been subjected to IVA proceedings for so long.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk