Accuma Misled Me about Windfalls

[Hunter1]

I've just received some documentation from Accuma on my recently approved IVA.

Whilst I was very happy that the proposal went through first time and it was well prepared I asked someone in their office by phone about what happens with windfalls as there was nothing specific in the proposal.

They said catagorically that 'there will be a standard clause that 50% of any windfall will be payable to the IP'.

I have just received a letter that says 100% of any windfalls must be paid straight over to my IP and I will not be entitled to keep anything at all.

I was banking on keeping part of bonuses just to be able to afford a modest christmas. Without anything I don't think it's workable. We're only talking about a few hundered quid here.

Also they have included a provision to automatically increase my contributions reach year based on a % of salary increases which wasn't mentioned before the IVA commenced.

I'm absolutely furious about this, mainly about the windfall clause. I appreciate I must contact them about this but I'm really tempted to tell them to shove the agreement where the sun don't shine at the moment.

Any advice on this?

[Skippy]

I had my IVA with Accuma and I had a clause in my IVA that any windfalls would need to be handed over, but if I received any bonuses, overtime etc I would only need to pay in 50%, meaning I could at least keep some.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Hunter1]

Thanks Skippy,

Maybe I'm over-reacting at the moment. It's just very alarming to see something like that in writing when I've just gone through the hassle of getting into an IVA.

[Skippy]

I know what you mean. I would give Accuma a call and ask them to clarify what they mean by 'windfall'. Good luck!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Sadsack]

I have a clause in my IVA which states that any windfall over £500 must be paid over to the IVA. There is no mention of 50%, however, during my original conversation with the IVA company, the "consultant" did mention that 50% should be paid over. Nothing in the IVA notes about this though!!!

Sue

[Hunter1]

Hi Sue,

My letter just says 100% must be paid over of all windfalls. It doesn't say what is classed as a windfall. Guess I'll just have to phone them and find out.

It's just frustrating when I thought I knew what the next five years budget would be like and now I have no idea again!

[tracy.h]

Hi Hunter i thought it was a clause in all iva's that a windfall would be paid directly to your ip as this allows you to pay back a bigger percentige of your debt.
But reading other posts it seems regarding a bonus it seems some are allowed to keep 50% others pay 100%
i should think this depends on the company you are usings individual criteria.
Was this not explained at the time you agreed terms of your iva.
I would personaly give them a call asap to clarify your posistion regarding this situation.
I hope you can sort this out as if your iva is already excepted then as it is a legally binding contract there is nothing you can do,i wish you the best in sorting this out.

Tracy

[MelanieGiles]

Hi Hunter

There seems to be some confusion about what constitutes a "windfall". A windfall is any money or assets which comes into your hands after the IVA was accepted, but was not envisaged at the time the proposals were presented to creditors. Usual examples of windfalls are inheritances and lottery wins.

It is questionable whether bonuses at work are indeed windfalls. Technically they are - but it is usual for creditors to require 50% of additional earnings - so if your proposal provides for this, or it was modified in my creditors, then you may be able to retain 50%. You will of course have to carefully check the wording of your IVA proposal (I am sure that you did this anyway when your IP sent it to you for signing), and the Chairman's Report.

I am slightly concerned that you are suggesting that creditor modifications were accepted by the IP without reference to yourself. If this has happened, then they will not be valid and you must discuss the implications of this with your Supervisor immediately.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Hunter1]

Hi Tracy,

I did speak to someone at Accuma about bonuses and they said 50% is the standard amount they expect.

But there is nothing in the final documentation about this.

It's just really annoying to see things different to what you agreed and discussed by phone.

[freelili]

The way it was explained to me was any 'windfall' would be paid into the IVA, I asked for clarification on this and Richard said any money that comes to you that you are not expecting or budgeting for, ie lottery win or inheritance as you would pay this to your creditors even if you were not in an IVA, wouldnt you?

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

[Hunter1]

Hi Melanie,

I think I may have got the wrong end of the stick about this.

However, there is nothing specific in the original proposal. The letter I got this week is a one page summary and just has the paragraph about windfalls (which I may have mis-interpreted) and also about increasing payments each year (I'm ledss concerned about this).

I presume the best will be to clarify with Accuma and get them to confirm in writing that a bonus is not a windfall.

I know I will be getting a bonus in December and probably March. Absolutely happy to give some of that to my IP but if I can't keep any of it it will be a major blow and one I'm not sure I can cope with.

Only talking about £1,000 here which is not significant in the scheme of things.

[Hunter1]

Hi Lily,

Having read yours and others replies I think I've got this wrong. I'll contact Accuma to find out.

It's just hit me really hard as I have a guaranteed bonus at Christmas which would at least mean I could give the family a reasonable Christmas with part of it.

The thought of having nothing for Christmas is awful. Might be worrying about nothing but thought I should put it on the forum.

[Sadsack]

This is effectively the most annoying thing about entering an IVA. When the IVA is accepted and you receive the Chairmans Report outlining the variations and modifications of acceptance of the IVA, why then do "things" continually change. For example, why is it not clearly stated how much of the "windfall" must be paid over, how much of bonus's and extra income - % wise must be paid and the terms of equity release. Surely there must be some agreement between the creditors, the IP and the debtor which is absolutely clear so that everyone knows exactly where they stand. There should be some form of clarity regarding this and IVA companies should ensure that all parties are absolutely clear and aware of what is required.

What has happened to putting everything down in black and white so that the debtor is absolutely sure of his/her obligations? It seems that most of the "negotiations" between the IP and debtor take place after the IVA is accepted and these are done telephonically. Surely any modifications after acceptance should be put in writing and therefore be a legally binding "contract".

Sue

[iva experts]

Hi Hunter,

I do think the best way forward in this case is to contact Accuma directly and query the conflicting information you have received.

You may be worrying about nothing and you won’t know until you give them a call.

Please let us know of the outcome.

Hope this information is of use

Regards. IVA Experts

[freelili]

Hi Hunter

Its perfectly understandable these things are usually done at a time of great stress and all you want to hear is the yes on the creditors meeting day. Its only after the initial relief that you begin to actually realise you have to live like 'this' for five years. Having said that I have to say that I found Accuma very very good, panoramic and were willing to MOVE which is what I wanted, I really hope you get to keep half of your bonus. Good luck

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.