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Just wanted to ask .We have only just had our iva approved but my husband has a legal claim with a solicitor for an accident last year while he was at work.If successful and he recieves compensation is it right that we have to give any money from this to our ip for our ivas.Also if we inherited any money that was alot could we then pay our ivas off and settle them early . How would that work ?

Both would be classed as a windfall and have to be paid into your IVA then after the creditors have been paid in full for original debt plus any interest plus IP fees, the remainder would be yours

mrs skint

So if we recieve any money and it was a considerable amount then even though we both have ivas in place we would have to pay the whole amount of the original debt and not what the ivas total too !!!!

Any windfall or inheritance that you receive has to be paid in to the IVA for the benfit of your creditors, to the extent that, after costs, creditors receive payment in full plus statutory interest. So yes that is 100p in the £ and NOT the equivalent of what was specified in the proposal.

It is not quite so clear cut regarding compensation received. If your husband is out of work as a result of the injury sustained, then it could be argued that an element of that compensation should be made available for living and out of pocket expenses. This is something you may need to take advice upon when and if you receive the compensation. It will be broken down into specific elements.

Tell it like it is.

Personal injury claims are exempt from bankruptcy proceedings, so I would argue the same in IVA. My own proposals include provision for such claims to be excluded, but you will need to check the terms of your own.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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