www.iva.co.uk

how is a legacy of money from a family breavement treated within the IVA system?

Hi
If you are in an IVA then it is treated as a windfall and you will be required to pay an amount into your IVA that does not exceed your original debt plus IP fees and statutory interest[less payments already made]
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

If the IVA is in my name, and my wife receives the windfall, am I right in beleiving that the windfall can't be touched by the creditors?

That is correct - your wife's money is hers to keep (but she might want to give you some to offer a full and final settlement to your creditors).

Would you have to pay back the original debt or the amount agreed after the IVA?

The original debt plus all outstanding costs, and most likely statutory interest at 8% per annum on top.

by 'original debt' do you mean the IVA agreed amount or the total debt on which the IVA was calculated [the total of the credit cards before coming to an agreement].

The debt you incurred on the credit cards - the IVA does not change the overall debt figure. You always owe the overall debt figure, and this is not adjusted until the IVA is concluded.

Wow, so if your original debt was 27k, and reduced to 15k under the IVA, you would have to pay back the 27k plus IP's charges plus 8% interest?

Seems fair doesn't it - paying back the full amount you originally borrowed because you have benefitted from some unexpected money.