www.iva.co.uk

Hi,
I had a letter out of the blue saying that I was getting £850 from a DWP claim made nearly 4 years ago. I wrote to ask DFD if I could keep the first £500, from posts on this site it looks as if other people have been allowed to do so. Their customer service has written back to say that the full amount should be paid into the IVA. I am allowed windfalls of up to £500. Do they have any discretion about this? Should I ask for an answer from the IP? Any advice would be much appreciated.

Check your original proposal details and speak with your IP rather than the admin team to confirm - although I do think our IVA with DFD does not mention the first £500 for windfalls - all is expected to be made available for our creditors.

That clause means that if the windfall is less than £500 you can keep all of it, but if more you have to hand it all over I am afraid.

I learn something again Melanie thank you for that x

Me too - I thought you could keep the first £500 and hand the rest over.

That's what I thought as well.

so, if you did get a windfall of over £500, it all gets paid into the IVA, does that go towards the proposal divided value and maybe reduce the IVA term or is it just added to the pot to improve the dividend and the IVA carries on the same?

It improves the dividend and your payments continue as normal for the remainder of the term unless of course the windfall is sufficient to repay creditors in full plus the costs of the IVA.

i wonder what happens if your parents die and you get money do you have to give that over..i lost both my in laws but they didnt have any money

Any inheritance is also a windfall. Some clients who enter IVAs who know they are beneficiaries in wills have the wills amended to make their children the legatees.

so once the intial debt cleared can you keep the rest?.is there any way the IPS find out or do they only know if you tell them?

I feel you should be forthcoming as you will surely get found out at some point, then your IVA will fail and be back to square one for the sake of something you never had before and so won't miss it.
we have a PPI refund claim still on going and if that ever came to anything then we are already resolved it's gone!

i have no secrets just my iva....was just interested in light of my husbands situation on the death of both his parents.(they had no money) and rented a house.i just wondered how the IPS would find out in a windfall situation?

I guess that the IP won't know unless you tell them, but if ever a bank statement or something was requested you would be in the s***
I suppose it boils down to the honesty and concionce of the indivdual

Wills are public record and if you did not disclose your inheritance this could be found out. There are criminal sanctions available and the repercussions of dishonesty could be severe.