www.iva.co.uk

I have a huge dilemma with my IVA. Last December my Nan died, and I jointly inherited her house with my brother worth about £110,000. The house has not been sold, so I have not received any money from that. My IVA only has 6 months left. Is it against the law to not declare this inheritance? I am also unclear whether a windfall only impacts the IVA amount, or the original larger debt. It is making me very worried, which is why I have asked a few questions about what my IP needs to know at the end of the IVA. How do they know if you inherited if you don't tell them? I don't want to break the law, but I haven't got any extra money to pay anything else. Please help! Thank you.

Hi,

A windfall will impact the whole of the debt, not the amount you have agreed to pay into the IVA. You will always owe the whole amount until the end.

I have no idea what happens in this situation if the house hasn't sold, or if your IP is able to find out about this if you don't tell them.

It does pay to be honest though. Hopefully one of the experts will be along to advise about this.

Hi Discojen and welcome to the forum, that is a dilemma, however as Kallis has said honesty is the best policy if the house was sold would the amount that you received from the sale cover the debt in total or a percentage. I think that you do need to seek advice from your IP and they will guide you as to what is the next step. Take care and be safe and this will sort itself out.

It is not the cash from the sale which becomes a windfall but the asset itself. You have a duty under the terms of the IVA to declare your interest in the asset, and it will need to be sold to ensure that your creditors receive their rightful return.

You are breaking your contract with the creditors if you do not disclose the asset to your IP, and if they find out - bearing in mind you will have to sign a declaration that you have not received any windfalls during the IVA period - then they are bound to be not best pleased.

This happened to me recently with one of my clients who failed to tell me about an inheritance, but following an anonymous call from who I believe to be a member of his family, we managed to trace the asset and now his creditors have been repaid in full.

I see that this poster has opened another thread about offering a F & F with 6 months left.

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=24957

Will be interesting to see if they pay the creditors in full with the sale of the house

Hi again

Yes, I was asking about a F & F as I only have about £2000 to pay which my partner said he would lend me.

The house is not in my name - it is in my Mum's name as she is the executor. I suppose I was thinking that if I paid off the IVA before the house sold it would be OK. If I am being really honest I suppose I was a bit fed up that I was so close to paying the whole thing off, and struggling to get by for four and a half years, and then I come into some money which can really sort me out and I would have to give it all away. But, I guess I will have to own up as it is the honest thing to do. It was my own stupid fault for getting into debt in the first place.

Would someone help me work out how much of the house money I would have to pay if I put some more details up please?

Thank you all x

Hi,

Honesty really is the best policy and I know it is a pain being so close to the end. But think of it this way you will be repaying your creditors in full and that can only be a good thing.

If you put the total amounts that you borrowed originally from your creditors inclusive of the interest it will give you an idea of what you should pay

Cant you delay the sale of the house until the IVA finishes? I know thats not being entirely honest, but until the hoise is sold, you dont have the windfall and once the IVA is finished, they cant then take any money you come into. Thats not lying is it? I dont think you are being dishonest having these thoughts, who in their right mind would really be happy to have that money taken away with only a few months to go and having struggled for 54months. You've kept your half of the bargain! Your only human after all! Sorry, just speaking my mind.. as usual

Mrs M, if you read Melanie's post she explains that it's not when the house is sold that matters, it's when you inherit.

The idea of an IVA is to repay as much to your creditors as possible, not to hide windfalls etc.

The house has been on the market for a couple of months with no interest in it at all. I suppose that's why I was asking if I could pay a F & F now before it got sold. From the previous responses I am guessing that can't be done, but I can't help agreeing with Mrs_Moody! But then, if I offered a F & F would the IP find out about the inheritance anyway? My mum sorted all that out.

Also, I am worried because I looked in my IVA documents and it says I should inform my IP of any assets received within ten days. I haven't done this, so now I am worried about the consequences. I didn't know what to do, so, did nothing.

This forum is about giving proper advice and not loopholes to get out of contractual agreements. Mrs Moody is incorrect in suggesting that you don't have the windfall until the house is sold. The windfall is the asset you have inherited.

Most people borrow money with the intention of paying it back - and whilst it is the unfortunate death of a beloved relative that is causing the original poster the ability to do this in a far more effective manner than her original IVA terms allowed for, it is the nature of the contract you chaps enter into when signing up to an IVA.

Well said Melanie.

Mrs Moody, if you're so against paying any windfalls into your IVA are you sure it's the right course of action for you?

Having just read your last post - you must speak to your IP, and I don't think that some of the advice you are receiving from some forum posters is being very helpful to be frank. You are duty bound to declare the asset - the fact that you have not done so within the timescale is not likely to be of great issue.

If it is still in your mum's name can it still be classed as your asset for the purpose of the IVA surely it is still your mothers asset.

I know honesty is the best policy but I know I would be thinking on the same lines as you without a doubt.

I dont envy the moral dilema you face

The poster says that she jointly inherited the property in the original post? Is this actually the case - ie were you the named beneficiaries in the will?