Wind Fall F.A.O. MELANIE GILES / MICHAEL PEOPLES

[slm40]

Hi I'm looking for some advice.

I racked up a lot of debt during a past relationship and have had to enter into an IVA. I've just paid my 4th payment, and currently have no problems meeting the monthly payment.

In October 2011 I set the wheels in motion to get my IVA up and running however on 5th November 2011 my granny died, and unbeknown to me until only last week I was named as a beneficiary in the will. My IVA was approved on 23 November 2011.

Anyhow since I've always been poor at managing my finances since I was at school my mum set me up a savings account with my name on it that she has control over. My father & grandad were executors of the will and dealt with all without even advising me I was entitled to a windfall.

However its only last week my parents surprised me telling me all had been settled by the solicitor and had lodged a cheque into my account, and to make matters worse to help me used the money to go ahead and pay some other stuff i.e. repairs to my car etc - they don't know I have an IVA and I'm very worried about what to do now, as I knew my IP had to be made known about the windfall as well as have all money transferred to my creditors.

What shall I do?? Do I explain the situation to my IP, and does anyone know will he give me a chance to put whats left of the windfall into the IVA and make up the "spent money" by agreeing to a higher monthly payment?

I'm so worried, I can't eat or sleep

[GilliB]

Hi sim40. Welcome to the Forum. Sorry to hearing about the passing of your Granny. It sounds like your parents were acting in your best interests, and wanted the money to be of good use to you - having no idea about the IVA. From what you say, you have done nothing wrong, and I would suggest presenting the facts to your IP as you have done here, and see how she/he can help you move forward. You have come to the right place here for advice, as we have more experienced and knowledgable members who will be along soon to help you, and hopefully ease your anxiety. Please try and be assured that there will be a solution. All the best, and please let us know how things go. X

[KAYKAY]

Yes, you must speak to your IP. However, I have a feeling that you may have to come clean to your mum about the IVA, as unbeknown to her she may actually be giving preferential treatment to some of your creidtors. Your IP will be best placed to advise you on the way forward. Sorry to hear about your Granny.

[kallis3]

Hi and welcome.

So sorry to hear of the loss of your grandmother.

I agree with KAYKAY - I think you will have to come clean with your mother about the IVA and you will have to tell your IP.

I'm surprised the solicitor didn't check whether anyone was insolvent or not as they usually do.

[slm40]

Hoe can I get advice from any of the professionals? Melanie or Michael?

[slm40]

KAYKAY I didn't have any debts actually outstanding to get preferential treatment to the creditors - it was just things like work needing done to my car prior to MOT etc.

[Broke of London]

Chat it through with your IP and let them know what's happened. I'm sure they'll be able to come to an arrangement with you. Your obligation is to let them know of a windfall when it becomes known to you! Which is what you'll be doing. x

[kallis3]

They will hopefully post on here but you have to speak to your own IP as they have detailed knowledge of your case and are the only ones who will be able to tell you how it will affect your IVA.

[KAYKAY]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by slm40

KAYKAY I didn't have any debts actually outstanding to get preferential treatment to the creditors - it was just things like work needing done to my car prior to MOT etc.

That's good news, that should make it easier to get things get sorted quickly for you. Hope it all works out. I am sure there will be a solution.

[KAYKAY]

Looks like the title has been amended for Melanie's and Michael's attention, hope they can at least give you a little peace of mind, until your IP sorts this out for you.

[Tina Shortland]

Hi slm40 - hopefully you have seen the email which has been sent directly to you.

[MelanieGiles]

If I were acting for you, I would allow the expenditure that has already been incurred and seek the balance as the windfall - so long as the expenditure was justified and necessary. Your own IP may have different ideas, so it is essential that you discuss this with him/her. If they do not agree to allow the expenditure, you could always extend the IVA until this was repaid - as paying higher monthly payments in the meantime could make you struggle on an ongoing basis.

[slm40]

is a search of the probate / will public register carried out at annual review or what way does it work?

[Broke of London]

I'm not sure what checks the IPs run. I think a lot rests on trust but their powers are quite wide-ranging if they have suspicions.

[slm40]

I'm still awaiting a reply from my IP.