www.iva.co.uk

Hi I have been in an IVA for approx 8 months now. i owed three cards total of about 24,000 mu iva is for approx 12,000. i pay 200 per month and havent missed any payments. i did not owe any money to my bank barclays.. i still have my account with them. i had some money paid into the account yesterday from my mothers estate and then transferred it into my daughters account.. it was for £25,000.. will this flag up on my account that i have an iva and if so will barclays freeze my account, remember i dont owe them any money... i am so scared that i will lose the money they said when i paid in that it would take 3 days to clear i panicked, nut my friend said that the checks they will do will just be to check that the money came form a realible source etc... if there was a problem can barclays freeze my account.. would they benefit from doing that or am i worrying for no reason.. please help

Have you informed your IP of the money paid into the Barclays account as it may well be classed as a windfall and need paying over to the IVA. I think you account may be ok but do check your proposal and with your IP in respect of the inheritance. x

Rebecca - i assume the money is yours, from the estate? - you need to read your proposals - as you may find the "windfall" has been capture under the IVA.

If this is the case and you try and hide the money - you may find you have breeched the terms of your IVA

There is a very good chance that this will fall under the windfall clause and will have to be paid into your IVA -- please check your paperwork.

Don't think of it as losing the money -- OK you will pay back all of your debt instead of having half written off, but you should benefit from not getting stung by the interest you would have beem paying. This will ahve the effect of drastically reducing your IVA term, as you won't pay more than 100% of the debts, IP's fees and, possibly, statutory interest. So you will hit that figure pretty soon and be debt free.

So, your mother will have given you the chance of a fresh start, and you will be £200 per month better off.

Agree that this will be classed as a windfall. You need to inform your ip about it.

I would really inform your IP as others have said. My IP has said I need to send in bank statements every 6 months so if it comes to light that you have withheld info it would probably breach the IVA - unless of course the money was left to your daughter?

I've got to agree with the others that this sounds like a windfall and it's just not worth hiding it from your IP.

Who does the money belong to? Are you a beneficiary of your mothers estate?

They are two of the questions your IP is likely to need answers to.


Transferring money through accounts when in an IVA is allowed but £25000 is a lot of money and your IP will need to know if you have received an inheritance.

Regards

It sounds as if it is the OP's money and she stashed it in her daughter's account to avoid it being taken in repayment of her debts.

I would always get found out - that's how my life goes! So like this month I got a small performance bonus and straight away contacted my IP. I couldn't live with knowing I'd done something that may jepodise(?) the IVA. If my mum or dad died (heaven forbid) and I wasn't in an IVA the first thing I would do is clear debts so it's the same really isn't it?

It is equally likely that the money was left to her grandaughter, and her daughter may just be using her account to process the funds. Let's not be so judgemental without the full facts.

Absolutely - I did ask that Q re who the money was left to but OP hasn't posted further yet.

I think we would all feel a bit sick if we won some money or inherited some during the IVA but as foggy mentioned you have a chance to clear your debts in full without having had all the interest building up if you had not been in an IVA. Win win situation really.

kazzafunk wrote:

Absolutely - I did ask that Q re who the money was left to but OP hasn't posted further yet.

I think we would all feel a bit sick if we won some money or inherited some during the IVA but as foggy mentioned you have a chance to clear your debts in full without having had all the interest building up if you had not been in an IVA. Win win situation really.

If I inherit a large sum a week before my completion certificate arrives "a bit sick" wouldn't really cover it ! Still -- it's what I signed up for.

It was a bit sick or something ruder!! Went for the soft option! If I ever win the lottery it will be 1p more than what I owe - I just know it!

ha ha ha me too, but I agree it's what I signed up for!