Iva - what are classed as windfalls?

[Lola]

We have a creditors meeting on May 1 and hopefully should have an approved iva.

Hubby owes £24k and I owe £10.5k. The proposal states that my creditors will get 100p in the £ and hubby's 77p in the £. Our payments are going to be £664 a month for 60 payments. My creditors get all of their money, minus interest on one credit card. Hubby's will get £18.5k.

What is classed as windfalls?

I'm about to get a PRP payment of around £150 and I get an annual increment payrise from July which gets paid in October and backdated - usually around £150 too - will I have to pay half of each of these to my supervisor?

Also husband is the army and about to deploy to Afghan. He gets an allowance for being away, about 400 a month, this covers food, extra spending while he is away, extra insurance we have to boost, it also covers the lost income from petrol money we get from the army when he is here (already declared in our iva incomes as it comes as part of his salary, so our income from him will drop slightly while he is away). Will I have to pay half of this?

Also, he gets his tax back when he gets home, around £1500 - will I have to pay half of this?

Who gets this money? MY creditors or my supervisor?

Also, are they very strict on watching what you are spending on - for example if I do buy my children some toys or clothes are they going to question me? What if I manage to save a little money by being really strict and watching what I spend, will they expect me to hand that over too?

Any advice would be much appreciated.

Also, and this going to sound awful, if hubby dies while in Afghan, are my creditors going to demand half of any payout? Also, what happens to his debts? As they are unsecured, are they written off?

[sblack]

Welcome,
WOW that is Huge return for the creditors.
One of the forum experts will be along shortly to answer your questions.

[Skippy]

Hi Lola and welcome to the forum.

The best person to answer your questions will be Melanie Giles as she is ex-forces.

Good luck with your IVA, and I wish your hubby luck in Afghanistan - I hope he stays safe x

[Adam Davies]

Hi
I can answer some of your questions but will leave some to the expert IP Melanie[she fully understands the ins and outs of life in the forces]
You will most likely have to pay half of any back dated payrise and half of any pay bonus.
Windfalls are unexpected monies such as lottery wins and inheritance,and all will have to be paid into your IVA[Upto your original debt level plus IP fees and statutory interest,less payments already made]
You can spend your agreed expenditure or your half of any overtime and bonus on anything that you want to,your IP and creditors will not be interested.You can also save whatever you can
Regards

[zim zim]

Hi Lola,

I am no expert in the insolvency field but i did serve with the army and the allowances you are talking about should be exempt from your iva agreement. They are in place for op tours and overseas postings to enable you to cope financially in a foreign land and when your partner (like now) is deployed elsewhere. Hope Melanie would agree with that and if so would probably word it far better. Hope it helps you a little and the best of luck to you and yours. Regards,zim zim

[Lola]

Thanks so much for the advice - and I'll wait to hear from Melanie. I'm pretty sure our proposal is TiX compliant and it roughly said, that I pay 50 pc of any payrise or overtime, after it exceeds 10pc of my net wage. Which isn't so bad, around £30 off each.

Although we read through the papers and signed them last weekend, the IP hasn't sent a paper copy to us yet. So I'll check them then.

Thanks!

[MelanieGiles]

Hi Lola

The allowances you refer to should not be grabbed under any form of windfall clause, as they will be needed to fund the additional expenditure associated with separation and an overseas deployment.

You will, however, need to check this with your own IP, as they may not share my views. I suggest that you get this in writing to avoid any misunderstandings at a later stage.

I hope you partner has a safe tour and gets home soon - and if you do not get the answer you need from your IP it is not too late to pull out and represent. Personally I would have specifically covered off these points within your proposal document.