I assume the question is raised because the amount involved is significant.
The protocol standard terms are woolly and vague, to say the least, on the subject:
"14. After-acquired assets
14(1) Subject to the following sub-paragraph, the supervisor may claim as an asset of the arrangement any after-acquired assets. Any such asset will be subject to and be an asset of the arrangement.
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."
My belief is that for something to be caught as an after-acquired asset (a bankruptcy term) there must be some element of "windfall" i.e it dropped into your lap i.e just happened. I believe also that it is meant to be the inevitable consequence of something. Typical examples will be an inheritance or a lottery win. For that reason it makes sense to raise the question of inheritances during initial discussions with the IP as great auntie Cissy might not want her house to be sold following her death so the money can go to your creditors. She may want to change her will as a result as once she dies neither she nor her executor can do anything about it. Same with a lottery win, when the money comes in, it's yours. Nothing you can do to change your actual ownership of it.
I would have some difficulty in extending that concept to a Christmas gift of money, especially if it has been given to you for a specific purpose eg to spend on a new TV, the family, book the summer holiday etc. It will help if your relative can make it clear, in writing, that the money is being given to you for a specific purpose which will to a degree impose a trust on it, rather than it simply being a general asset.
You will however for all practical purposes need to notify your Supervisor about it simply because it will go on your Bank Statement which may be called upon. It will help your cause greatly if you have also spent the money in fulfilment of the agreed purpose. If you have not, and the money is just sitting around, then it may simply be a general asset and the trust argument will be damaged. Having said that, unless you are talking about significant sums of money the IP would need to be a bit of a Scrooge to claim a Christmas present as an after-acquired asset. There might be the odd one who would, however, so you would be wise to think about these things now, rather than 6 months away, at review time.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd)
www.pdhl.co.uk
