www.iva.co.uk

Hello all,
I wonder if anyone can help. I recently paid a full and final amount into my IVA. I have received a copy of a letter called a "Notice of Completion of the Voluntary Arrangement" that has been sent to all the creditors. The letter basically states that a full and final dividend, that has been agreed by the creditors, will now be paid. The creditors will have either received or be about to receive their dividend (the dividend is not for 100%).

I have recently received in the last couple of days some money of a relatively sizeable amount. I have not banked it yet as my bank, where my current account is held, are (were?) one of my creditors for an outstanding amount due on one of their credit cards.

Once the full and final dividend has been agreed and the "Notice of Completion" issued can the bank still lay claim to any of the money I am to bank? I was going to open a new bank account in due course but I will not be able to do so before I need to draw on the funds I have recently received. The money is needed for a variety of reasons. Is it OK to bank the money safe in the knowledge that no further claim can be made against it?

Many thanks for any help anyone can give

Vinnie

If a full and final settlement has been agreed with your creditors, the settlement paid and a notice of completion issued, then under the rules of the IVA, any money you subsequently receieve is not available for the creditors.

However, it is very unusual to have received a "sizable" sum of money so soon after settleing an IVA which you did not know might be coming before making the settlement. Can you ay hand on heart that you did not know that this money wa coming? If the answer i yes, then you have been very lucky and that is that.

If the answer is no, then I suggest you tread very carefully. If you knew that this money was coming but you did not disclose it during the negotiation of your full and final settlement, there could be a problem.

You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
James Falla
www.thomascharles.com

Hi Vinnie

James Falla at Thomas Charles is right, if you were aware that you would be receiving this sizeable amount of money before you made the full and final settlement offer then you will not have made a full disclosure to your creditors of your affairs and this could be a breach of the terms of your IVA.

Did you recently make a new offer in full and final settlement or have you just completed the term of the original IVA? The key here will be when you became aware of the sizeable amount which you were to receive - your IVA is likely to have what is called a windfall clause or a clause that deals with "after acquired assets". If you became entitled to this sum of money before the completion of the IVA then your creditors are likely to be entitled to it.

Hope this helps



AccumaGroup
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