www.iva.co.uk

hi
my husband and i are in an iva (2 years). he has had a dispute at work for the last 5 years where he was due to be upgraded; this has been resolved and he is due to recieve the backpay probably in the next few months. this backpay over the 5 years works out at approximately £10 a week=£3000, which would not have made any difference to our iva payment but will be paid to us in 2 lump sums. our paperwork from DFD states that we have to pay over 50% of windfalls and inheritances but we were expecting this money at some point and 3 years of it is pre-iva.

i am not wanting to shun my responsibilities but the iva living allowances do not help when it comes to decorating or maintaining property or renewing furniture that is on it's last legs; so this money would be very helpful in that regard.

any opinions would be appreciated as we would not get a straight answer from DFD.
thanks

You will have to pay the 50% over to the IVA regardless of what period the money relates to - but of course this advice should be forthcoming from your own IP directly.

I've just received backpay, albeit nowhere near that much, but I have been allowed to keep all of it.

I think this is another issue which shows the differences between Ip's when dealing with certain matters. Unfortunately for Barbarella it does sound like the backpay will be partly swallowed up.
Barbarella I assume you are not returning a full 100p in the £ so some of your debt shall be forgiven,albeit you shall lose out on the backpay because you are in an IVA,but dont you think you are still getting the better of the deal?

DFD made us pay 50% of it into the pot when I got back pay last year - at the end of the day, it is only repaying what was borrowed, and at least you can retain half of it.......for some people it would be classed as a windfall and therefore 100% payable !

There are a number of differing terms and conditions relating to the treatment of additional income, and it is not necessarily the IPs who have differing views, but the creditors who actually direct us in the method of supervision of our cases.

This is also on the next Agenda of the IVA Standing Committee (Technical Sub-Committee) to try and come up with a relative simple solution that all Protocol compliant IVA's would be subjected to. Watch this space as I have it on my list.

David Mond wrote:

This is also on the next Agenda of the IVA Standing Committee (Technical Sub-Committee) to try and come up with a relative simple solution that all Protocol compliant IVA's would be subjected to. Watch this space as I have it on my list.

By protocol compliant,do you mean that certain insolvency firms follow protocols but some others dont? Is there a way to find out who follows what protocols,as this would be handy info for someone about to start down the iva route.

Plasticdaft. All IP firms have to follow the law and what is required by their regulators. Not all IPs operate 'protocol compliant' IVAs but this does not mean that their proposal is any less likely to be accepted or is of a lower quality. Protocol is only a name and does not mean that firms using it have higher standards than those who do not.

Hi
Wouldn't it be better though Michael if all IPs used this route and any cases that fall outside the protocol can be proposed as " non protocol " ?
Regards

By having protocol and non protocol iva's surely there is increased confusion to the man/woman on the street at an already confusing time.

Thanks for the answers though guys,I appreciate the time and effort put in by the experts to help expand the knowledge of everyone else out here.

Problem is Andy that 'protocol' implies that it is the correct way and people would be afraid of something 'non protocol'. Any reputable firm will operate to the highest standard and try and propose the best offer affordable by the debtor and acceptable to creditors. Each person's individual circumstances has to be taken into account and a full investigation of assets and liabilities is carried out. Protocol comliant IVAs imply something extra that they do not have and indeed are the main reason given for SIVAs being tossed into the long grass.

Hi
Agreed
However the IVA protocol is with us, so why not make the best of it ?
Do you not propose protocol compliant IVAs at all at MD ?
Regards

NOw I am extremely comfused..whats the difference between Protocol and Non Protocol IVAs and how would I know which one we have???

Protocol IVA's only started in Feb last year I think.

As yours is before that, it will probably be non Protocol.