I am thinking of offering a full and final settlement payment to my creditors early on my IVA. It would not clear the full debt - it would be a reduced offer.
If they accept I'd have no further payments to make on my IVA, although I do realise they have been checking my PPI situation to see if there is anything there.
However, I am wondering about other windfalls, eg, inheritance.
If they accept the offer and I pay it but the final completion certificate has not yet been issued - do I have to give them the entire windfall? I've seen on other sites mention of 50% in these cases, and even negotiated lesser amounts.
Also, if the completion certificate has been issued for an early settlement, would this still affect any non-PPI windfalls received after that?
And lastly, if you make an offer like this and it is accepted, how long after payment is the final completion sent?
My own legal advice, from a leading insolvency barrister, is that additional windfalls cannot be grabbed once a debtor has completed their obligations, and the time has expired that was envisaged that the IVA would run over.
I do know of one other firm that do not share this view - but don't be frightened to challenge this as Courts generally side with the debtor.
Hi Steve, like you I am between acceptance of an offer and that completion certificate and I queried this with GT. Bonus payments and income related payments are no longer looked at, however, a lottery win or inheritance (windfall) would be drawn into the IVA.
GT are one of the few who take this view and most IP's release you from all obligations ( PPI apart)on the assumption that you have fullfilled all of your responsibilities.
There is no reason why you should be disadvantaged due to your firm's tardiness.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for that Foggy - I have already acknowledged of to my IP that any PPI currently being investigated does of course go into the fund.
Other than a bonus I hope not to get any other windfalls soon i.e. inheritance, so I'll just leave my IP to get on with the completion. They say 6 months, so fingers crossed!
I had a full and final settlement accepted by the creditors in end of Nov 2013 and I have paid it in Dec 2013. Jan 2014 I received a letter now that they want to release the equity in my property if there is any and is that right? I had given them the details back in Oct 2013 about the property and they call the meeting of creditors which accept the full and final settlement put forward. Is that correct to ask me for the equity release now especially after I paid the full and final settlement agreed at the creditors meeting.
Thanks in anticipation
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
My own legal advice, from a leading insolvency barrister, is that additional windfalls cannot be grabbed once a debtor has completed their obligations, and the time has expired that was envisaged that the IVA would run over.
I do know of one other firm that do not share this view - but don't be frightened to challenge this as Courts generally side with the debtor.
