www.iva.co.uk

windfall or not
our sister in law has recently had a good win on the lottery, and after sorting her imeediate fally out and securing her future, has offered us money to renovate our house. She is unaware we have an IVA. Can we accept the offer without having to hand most of it over to our creditors? things that need doing are Central heating (we have non), new kitchen roof, new kitchen and cookeer present are 1960s design, double glazing, general wall and ceiling repairs, plus flooring as we only have concrete floors at present, all things to bring us up to a normal standard of living. Also i need to purchase a car to get me to work as my last car was scrapped last year.

My suggestion is: call your IP without telling them who you are (withhold your number too), explain the situation to them, and ask them if they would claim the money. If it were me running your IVa I woulnd't claim it because it;s not your money, but I can't speak for other IPs.

If your IP says Yes, they would claim the money, then perhaps you should explain to your sister-in-law what the situation is and get her to put the money in a trust fund for your benefit once ethe IVA ends.

You might also like to ask them whether it's OK to borrow from your family to replace the car/do household maintenance on the basis that the loan is non-repayable until the IVA ends. I think they should certainly agree to this.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

I find that advice rather strange Philip - you suggesting that a client ring their IP anonymously. What benefit does that bring, and the IP is bound to ask who the caller is in any case.

This money is clearly not a windfall, as it is being provided by a third party who can do what they like with their money. I cannot see that any sensible IP would think otherwise.

To Geoff - is this money a loan or a gift? And if it is a loan, you will need to ensure that your sister-in-law is made aware that you cannot begin to repay it during the course of the arrangement.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I have no problem in answering queries for people who don't wish to tell me who they are, of course on a no-names basis such advice would only be general and not relating to any specific circumstance.

To take a similar example many people worry about their tax affairs too, and the Revenue and Customs are always happy to answer queries without requiring the caller to tell them who they are.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

The lotto money would be a gift to you surely as it was won by a family relative and not by the debtor. Gifts are not winfalls? If a gift is a winfall too then thats stretching what a Winfall is and clarification is needed.

A gift is not a windfall for IVa purposes as it is not something to which you are entitled. If, say, you receive a legacy in a will then that is a windfall because the will specifically entitles you to it.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

Surely if the money was given to you as cash then no-one would know about it anyway.

If it is given as a gift then this does not cause any problems in any case.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Following on if the gift clearly states what the money is to be used for it can be argued that it is for desiganted reasons and thus will not qualify as a windfall!

I wish I could win the lottery!!!! My numbers never come up!!!!