A question about inheritance: I'm just about 3 yrs into a 6 yr IVA. Original debt c £70k. I've paid £17k over 3 yrs, payments have gone up as I've had a good promotion, so on target to pay another £28000 over next 3 yrs. Total repaid therefore will be around £45k.
Sadly, my mum died recently, and whilst I don't yet know for sure, I should receive about £30k once all has been sorted.
I know the inheritance has to go into the IVA, and have come to terms with that. But does it just add to the sums I'm paying and therefore I'll pay off the entire £70k plus fees, and will have to keep paying for another 3 years as planned, or will they count it as my 3 years payments and allow me to finish early? Is there any compromise over this, ie they take the money, and I pay for say another 12 months or something?
I'm so upset over this, although I accept it has to go into my IVA, but to be left with nothing AND have to carry on with payments for another 3 yrs, is just unbearable at the moment.
Please can you give me some advice, so that I can prepare myself for what is likely to happen when the money comes through. Grateful for all advice on this one. I've not yet spoken to my IP as I don't actually know how much it will be, or when I'll get it.
Hi
Sorry to hear about your Mum
I am afraid that the whole amount will go into your IVA and you will continue with payments until your IVA term finishes or you have repaid the full 70k debt and IP fees
Regards
Hi skintali, I'm sorry to hear about your mum. The rules surrounding inheritance are tough but some proposals allow you to keep £500 so if this is not in your proposal perhaps your ip would negotiate so you can do or buy something in memory of your mum. Many people on here reason that if you were not in the iva you would have used the money to repay your debts anyway. I hope this helps x
If it is any consolation, and I suspect that it won't be right now, even if you end up paying all of your debt off in full, you may still be doing so far earlier than was intended when you borrowed the money in the first place. To this end, I suspect you would have made your Mum very proud.
Thanks Melanie, that is actually a good point. I have actually checked my original figures, and it says that the debts were less than I thought - £54000 and that fees are about £5000. So can you confirm that once I pay off the £59000 then that's it, ie no interest is added to the debt??
I calculate if that is the case, and if I have say £30000 from my mum then I will pay off the full amount in about another 18 months, not another 3 years, and that will just make it so much less painful!
Can you just confirm about the interest for me please.
Thanks again for all your kind words so far, it's much appreciated, and like so many before me on this site, just hearing from others is such a massive boost.
I would think that would be the case skintali - but do check your proposals as sometimes there is a provision for statutory interest to be paid in the event of a windfall. Quite unfair, and only now seen in older proposals.
