It is a very difficult situation for you to be in, but I have to advise you as a professional because that is why I am allowed to post on this site as a guest. I have to tell you that you are obliged to honour your contractual obligations under the terms of the IVA. If you choose not to, then this is a matter ultimately for your own conscience, and you will be untruthful if you declare not to have receive a windfall at the end of the IVA.
Hi Disco
Legally, morally and ethically you must declare this to your supervisor.
When entering an IVA one of the main conditions is any windfall / inheritance etc must be declared and put forward.
As the guys have already mentioned ,honesty is the best policy and I would advise you read Melanie’s posts as well.
The bad part of me so wants to say 'what the hell' and not say anything. But then I'd probably be writing to you all from prison!
The good part of me (which ironically has grown due to being in the IVA) says 'OK, phone my IP today.' The good part of me also wants to confess to the fact that I inherited some money too, but I spent some of it. I have about £25k.
In that case can I ask for some more advice from you kind people. My original debt was just under £46K. I was paying 26% (£300 a month for 3 years 9 months, then I have been paying £373 for the last 9 months, with six months to go. What do I owe? And what do I say to my IP? Would the £25k be enough to pay of the whole of the original debt?
Why dont you just hand over all the money and your half the house then Discojen, that should keep them happy!! Sorry but you have kept your half of the bargain, you have made every payment in good faith and are nearing the end of the deal. I just hope they take into consideration the monies you have already paid over the term so far when they work out how much you still owe them. Ooh, is it really only me that would be-grudge this so much if I was in Diso's shoes :-/
Skippy, I havent suggested such a thing, quite the oppopsite infact if you read again.
Yes, I personally would very much resent having to hand over an inheritance right at the end of the agreement and I find it hard to believe anyone would feel any differently. That doesnt mean to say I wouldnt if I had to, just saying I wouldnt want to. Unfortunately with regards to entering an IVA, I'd cetainly rather not have to take this road if I didnt need to, I dont relish the thought of a third party controlling my life for the next 5yrs, but its better than the alternative. If it doesnt get accepted I will have 16yrs of people telling me what I can & cant spend my money on!
Sorry, having read your earlier post I have to disagree.
However, I think we need to draw a line under this post now - everyone is aware that the windfall has to be handed over, and what we would rather do and what we have to do under the terms of an IVA are 2 different things!
Yes, I seem to have stepped out of the box a little there Skippy. I thought we were able to share how we felt about things on this forum, good & bad. Perhaps I was wrong. Perhaps an IVA isnt for me after all if I cant pretend to enjoy being in it.
Would it not be around the 34k mark that you would need to repay? As you have paid 26% of 46k surely they would excpect you to pay the other 74% which is £34,040 as what you have paid will include fees and I dare say you will have to pay for them too.
I am not sure if I am right or wrong but this is just how I see it but it would still be a damn sight more expensive had you of stuck to the orignial debt with the intrest, charges etc.
Back to square one but what dunt kill you makes you stronger!!
Yes we can share how we feel, but encouraging anyone to hide things from their IP isn't something that's allowed.
Discojen, your IP is the best person to answer how much you would be expected to pay. As far as I am aware you would have to pay your original debts in full plus IP fees (and possibly statutory interest if your IVA states this) so you will need to get a figure from them.
We don't encourage people to hide assets on the forum. If you have a windfall, you are duty bound to pay it across.
You will always owe the full amount to your creditors until the day you get your completion certificate.
Melanie has given you excellent advice, and you should heed it discojen. Far better to be honest about this than be found out later. Don't forget that probate and wills show up in public records.
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
