Hi Emmas
Are you currently in an IVA or just in the application process?
If you are currently in an IVA and then start to receive maintenance payments you will need to make these known to the Insolvency Practitioner. They will then have to re-assess your circumstances and decide whether you can afford to repay more to your creditors.
If you receive a lump sum in back payments, you may end up having to give over at least some of this to the creditors. After all, they will argue that if you have been receieving these moneys in the first place, then you would not have have to continue to borrow so much from them. As such, their view is that the back payment is really their money
James Falla
Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.
Visit my blog at:
http://jamesfalla.blogs.iva.co.uk