www.iva.co.uk

I have recently had a refund of £1400 from some payment protection I have. Does this need to be paid into my IVA? I'm having terrible trouble with my car and could do with keeping this money. How do the IVA companies know if you have received any extra money ? Sorry if that sounds as if I'm wanting to be dishonest I'm not I've just paid an extra £400 this month in overtime payments into my IVA.
I just want to know how they know what money you have or havent got ?

Hi Karen, I would run it by your IP and explain about your car at the same time. Always best to be upfront to prevent any surprises at a later date.

Hope you get to get your car fixed.

I could be wrong, but this payment refund was part of a loan ? so is owed back to the creditors, as could make a bigger dent in you repayments, i would be frustrated if it was me, but im sure my IP would take the lot to give a better return.

Thankyou for your replies...It is part of a loan but a secured loan and isnt included in my IVA.
My main question I suppose is how do they know if you have had any extra money.

Our IP's like us to be open and honest as it helps the process, in my experence so far, being honest with my IP's PA is in my best interest and theres.

Plus when your review comes in and they ask for bank statements, there may be some explained to do, and i would rather explain when it happens than after the event and i had spent the money.

My main question I suppose is how do they know if you have had any extra money.

I guess in truth people do "get away" with not declaring extra money, but is it worth risking failing your agreement if they do find out? If the money has passed through your bank account then you'll probably spend the next few years worrying in case bank statements are requested at your annual review, or in case the secured loan company is linked to another creditor and requests the money from your IP.

I agree that you should run this by your IP. If you have a genuine need to keep the money, you may be ok.

Honesty is always the best policy and if you have to pay it over, then so be it.

A colleague of mine who is in an IVA, recently received a £5k inheritance, they didn't want to declare it to their IP as they would have to hand it all over so they opened a passbook operated ISA at a Building Society. They thought that it would be hidden that way. I'm not so sure though as there may be ways this can be traced although someone else may know 100%.

Inheritances are a matter of public record so it wouldn't be difficult for an IP to trace it.

I can understand not wanting to hand over an inheritance, but there really isn't a choice in an IVA or BR.

Quite agree with Skippy.

It's not a good idea to hide these things as they have a way of coming back at you.

Best to be honest from the stsrt.

Agree too, not really 'cricket' is it. Their inheritance was not direct though, it was passed across from some other family members. I have said they should declare it ASAP!

Upfront and honest is the way togo in an IVA otherwise you are only fooling yourself !

Other than a gift, any other money received in an IVA should be declared as a windfall.

Out of interest why would a gift not have to be declared?

If someone gives you some money as a gift, especially at Christmas and Birthdays, that does not have to be declared.

I don't know what would happen if someone gifted you a large sum of money though.