Advice required

[e4sby]

Hi,

I have been in my IVA for about a year now and have had an injury insurance claim going on for the same amount of time. Problem is that i'm going to receive a cheque for around £4-5k for loss of earnings, expenses and compensation and was wondering how it would effect my IVA?

Will i lose some for my creditors as i was going to use it to pay a debt i have to my parents and my blasted overdraft!

Any advice would be great

Cheers
Chris

[Lisa2009]

Usually it would be classed as a windfall and would have to be paid to your creditors.
Paying an overdraft which you perhaps shouldnt have and paying your parents, i would imagine as prefering one creditor over the others.
If i were you i would be completely upfront with your IP and explain the situation and see what he/she suggests.

[chris.g]

I think it will depend on the terms of your IVA. You will probably need to have a look at them and will, without a doubt, have to inform your IP. Sure one of the experts will be along soon to let you know for definate,

ps, welcome to the forum

[luluj]

pay into a separate account and keep quiet! Not ......... be upfront and pay it to your creditors - after all you did spend it in good faith! Parents are normally ok to wait - I know mine are even though they are not made of money!
Why the overdraft whilst in an IVA - I thought that was a big NO NO!

[e4sby]

Looks like i will have to be upfront with my creditors, would be gutted if they took the whole lot off me!

Would like the opinion of an expert on the matter and a rough estimate on how much i'd have to pay out?

[Adam Davies]

Hi
You will have to declare this in full to your IP.
WAs your Ip aware of your overdraft or has this happened since your IVA ?
Your IP may allow you to pay off the overdraft before handing over the balance.
Interestingly under bankruptcy your payout would be yours to keep,strange isn't it ?
Regards

[MelanieGiles]

Why do you have a debt to your parents or an overdraft whilst you are in an IVA? And the payment you are due to receive will be classed as a windfall unless there is something in your IVA which would exclude it.