If you inherit money, then it is classed as a windfall and would need to be paid across to your IVA.
If it was a substantial sum, depending on how much your debts are, then you could make a full and final offer with it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi there and welcome to the forum.
If you are in an iva this would be classed as a windfall and would normally be payable to the iva, though some proposals vary, (so it would be dependant on what yours says). Mine says I keep the first £500 and the rest goes to the iva. It would not reduce the lenghth of time of the iva unless it paid back the full amouint of the original debt. It would just mean the creditors get more back.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Subject to wording in the proposals / modifications (Such as the ability to retain the first £500, it would generally all go for the benefit of creditors to the extent that they recieve 100p in the £ after the costs of the Supervisor have been discharged. Statutory Interest may also apply at 8% pa
No statutory interest in settling in full an IVA as debt is frozen with no interest at time IVA entered into.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
David - a lot of creditors have traditionally asked for statutory interest in the event of a windfall which would pay them in full - and continue to do so.
And indeed the IVA Protocol provides for interest to be paid in accordance with the terms of the arrangement - which is a little woolly, as there is no requirement for statutory interest to be included in a protocol based IVA - hence creditors modification to provide for it!
Melanie - which section number of the Protocol are you referring to as on first re-read cannot find anything on statutory interest!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
14(2) After-acquired assets must only be sold or realised to the extent necessary to repay the creditors in full with any interest they are entitled to under the arrangement.
As I said - woolly, given that I would not expect a proposal to refer to interest at all!
Gotcha - yes but only if Proposal states interest which the majority don't - so no problems
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
But it does if creditors stipulate this by way of modification, and the debtor accepts the modification.
I will monitor my meetings over the next month to see if we get this included under the windfall provisions, and let you know. If you feel that this takes creditors away from the protocol, then I feel sure you will be mentioning it at the next meeting of the Standing Committee.
