Thats ok, Many thanks for the reply.. I'm not to sure what you mean by asking my IP to quote the authority they rely on? And also what would determine that it falls outside of my IVA? I did not mention about my girlfriend and her loan no, but I did put down that I make payments to her of £50 p/m and that is listed in my orignal I&E form.. Sorry about all the questions, just trying to clear things up.. Thanks again
Stranger and stranger - so your IP is acknowledging and accepting that you are paying off an unsecured creditor in preference to the other creditors at the rate of £50 per month!
When I say quote the authority - I mean get him/her to tell you why they think it is a windfall.
2 issues here - your girlfriend and the insurance money. There is a possible solution but first the legals.
1. Your girlfriend should have been included in the IVA. The legislation (S260(2)(b)(ii) Insolvency Act 1986 governs what happens. She can either come into the IVA and participate in the dividend like everyone else (although the creditors might have to agree to the dilution of dividend). Alternatively she can wait until the IVA successfully concludes at which time you owe her the dividend she would have received if she had been included in the IVA. Legally, that is her lot I am afraid. However if there was some form of trust eg she was recognised to be the legal owner of the car and some of the money was payable specifically in respect of the car loss then you might have an argument that some of the money ought to be paid to her. Your reference to a loan renders this unlikely but what actually happened to the car?
2. The windfall clause would normally cover assets that become after acquired property in bankruptcy. "Compensation" can cover a number of things. I assume you were injured and the compensation would mainly comprise loss of earnings and pain and suffering. The loss of earnings element being compensation for financial losses would normally become after acquired property and thus be caught by the windfall clause. The pain and suffering element would not normally do so.
If the trust argument in respect of the car does not apply one possible way for you to approach this would be for you to agree with the Supervisor and your girlfriend that some of the (agreed) pain and suffering element of the claim be paid to her and any loss of earnings portion be paid into the IVA. In consideration of this she will accept this in full and final settlement of all claims she has against you. It is vital to do all of this out in the open as you will need the Supervisor on board given that he will need to be satisfied that the appropriate payment has been made into the IVA. He may also need to sell it to the creditors.
You will not be able to avoid involving the Supervisor without running a serious risk of breaching your IVA, but hopefully the above has given you food for thought.
Last edited by ianmillington on Thu Sep 04, 2008 10:48 am, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Thank you everybody for the advice.. I have sent a personal email to my IP detailing all the information I think I needed too, just hope I get a reply.. I heard this Mark Prideaux person is pretty hard to get hold of!
Cheers again everybody.. Great help as always!
If you are with debtmatters, and have not been transferred to GT or payplan, you will probably find it easier to get hold of the manager in charge of your case. Try speaking to Joanne Evans or Samantha Warburton, who ought to be able to help you.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Hi everybody I thank you for your help on this. I been in touch with the managers of my IP and they are sorting this out.. All I need to do is get a copy of how the breakdown of my compensation was made up. All though none of this is actually loss of earnings as its souly based on my medical and injuries sustained.
I just have a question about this though, I'm pretty sure that I will receive most of this money, but how am I supposed to store this? I mean, if its laying about in my bank wont they say that I have this extra money, or same if I was to put it into a savings account? Any advice please? cheers guys
Haha, I was indeed thinking about stashing it somewhere.. bit risky is my eyes though.. Good idea with the prepaid cards, but I don't really know much about them.. I know you have to pay for them but do they charge you monthly and do you gain interest on the balances? Also.. anyone know of any good ones to look at? Thanks again
I've just signed up for the paypal one and although I haven't used it yet, you don't have to pay a monthly fee. Not sure of the others but lots of other people will advise you. Good luck. X
Hi, yeah, I'm having a look at those cards now and also that website you just sent me Lily haha, They look like a good idea, thing is though, I think it is a bit of a liberty that they charge you to spend on it, top it up and probably most other transactions you do, but then, they have to make their money some how I guess.. How has other people got on with these? I will have to look a bit deeper into this.. for the time being, A lock up box is sounding a bit more appealing! lol
Thanks everyone
Well I had a cash card account, could only draw out money from lloyds machines and I just couldnt cope with that. So I got the cashplus gold maestro and the extreme cred. Both charged me. I then opened a coop account and got an electron debit card, about a year later they gave me a basic debit card at lloyds. So the prepays are extinct, defunked from my life. I used them and found them useful when I needed them. I was mugged and dont like carrying cash. I am also not sure I would want to leave a large amount of cash in the house. Could you open a savers account at the bank youre with, a contingency fund. If you get to keep the cash youre awarded then, thats that, right?
