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I currently live at home with my Mom...what would happen if my IVA is accepted and my Mom signs the house over to me and my sisters which she has talked about doing for a while now. My mom does not know my current situation and do not want to tell her.

Does anyone know what would happen? would I be made to have a valuation on the house and equity realised? How would this be fair on my sisters as it is a family home.

Any suggestions?

Hi suze

If you acquire an asset during an IVA which was not envisaged at the outset, then this is deemed to be a windfall which will have to be realised and the proceeds paid over to creditors. This would affect your sisters, as unless they could buy you out, the property would probably have to be sold.

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

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Tell your mum - don't let this happen whilst you are in an IVA. She could assign your part to your sisters until after your IVA then your sisters could assign it to you.

Be honest with your mum - you will need the support from your family whilst in an IVA and if they know what is going on you will feel a whole lot better.


Lulu

Thanks for your help

Good advice from luluj, although it will be hard to tell your mum about your financial situation even if she gets upset surely she will see that you are taking steps to rectify you situation.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

If you go bankrupt, then after you are discharged in 3 years the most,or shorter for some,creditors would not have cliam to that 'winfall'

Hi Emily,

Could you please clarify your question?

The usual amount of time for being bankrupt is 12 months, but if you have a disposable income you may have to pay the creditors for usually a maximum of 3 years (unless the OR states otherwise).

If you received a windfall after you have been discharged then I believe this money is yours to keep.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

As IVA Experts says the longest that you can be bankrupt for is 12 months (unless you fail to co-operate with the OR). If you receive a windfall after discharge this is yours to keep, unless it is something left to you while you were BR, e.g. a relative dies while you are BR and leaves you an inheritance but it isn't paid until after discharge.

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