Compensation

[longslog101]

as a term of the settlement could you not make the payment date some point in the future post IVA completion or the beneficiary is not you but someone else and in return you slightly reduce the amount awarded (as an incentive to them) the result being there is no windfall to you. or perhaps the settlement is paid into a trust of which you are not a beneficiary e.g. maybe the wife or kids are but you are a trustee (at least until post IVA completion), or some other slightly more expensive convoluted legal route, but still worthwhile than surrendering it all.

[fireblade3516]

Hi all, comments welcome -

The solicitors have emailed me and I'm to receive £22k compensation, the amount needed to sort all the planning and building regulation issues.
As above my IP wants a full breakdown before advising officially.
I have 30 payments left of £515 totalling £15,450
If I'm allowed to use the compensation to make a f&f settlement do you think I should offer the whole amount, the £15,450 as above or somewhere in the middle, as previously said it is compo for my property defects.
If my IP treats it as an asset and says it needs to be paid in fully to my IVA am I able to appeal in any way, I don't class it as a windfall in any way.

comments greatly appreciated

[fireblade3516]

Hi longslog101
It is something I have considered but didn't think it would be allowed to be honest. I don't want it to come back and bite me on the bum so to speak and would be happier doing the right thing by my IP

comments welcome

[Michael Peoples]

I do not see this as a windfall but I am not a lawyer. In my opinion the funds should be used to repair the faults and the property then dealt with in the normal way in month 54. Why take a court case when you are not the beneficiary? It makes no sense to me.

Perhaps you should ask your own solicitors for their opinion or get the advice of an insolvency lawyer. A` windfall is an unexpected injection of cash not foreseen at the beginning of the IVA which this is not.

[recovering]

Hi, I was allowed to keep compensation for pain and suffering whilst in my IVA, It was for pain & suffering

[fireblade3516]

Hi Michael
I would be more than happy to keep the cash for the property, (if can't use it for a f&f) the problem is that part of the condition regarding planning permission is to have 3 metre high instant hedging straight through the middle of my garden which would leave me with virtually no back garden, something I wasn't aware of when I bought it and is simply not acceptable. So not sure what would happen if I was allowed to keep it and get it all sorted?

Thanks in advance for your thoughts

[lifenoteasy]

Knowing the extent of the issues if you cannot remedy then you will never be able to resell or only at a loss.

The house has no value so therefore cannot be remortgaged or even gain a secure loan on.

There must be a compromise in all this that meets the needs of the iva but also allows you to do what is needed.

[fireblade3516]

lifenoteasy
you're correct, I actually have a report from an expert surveyor which states that until the stability of my property is proven my property is "without value". obviously everything has a value but I dare say it would not fetch full market value, I do however have no concerns regards its stability, I'm not a surveyor but feel the surveyor was covering himself if you know what I mean. the compromise would be to use a portion of it to cover my remaining payments and leave a little left over to sort the most important issues.

[Michael Peoples]

That sounds like a reasonable option. If you need to retain a certain amount for immediate and essential repairs then you could offer the rest as a F&F. Your surplus income could fund any ongoing non essential repairs and creditors may feel this to be a fair outcome.

[Lisa Thomas]

If you can prove the amount is not to be treated as a windfall then I suggest you offer part of the monies in F&F and propose to keep part to sort out some of the works on the property.

[fireblade3516]

Michael that would be the perfect solution, I know its up to my IP how the compensation is treated and ultimately up to my creditors but from experience is this an option my creditors may go for? I realise it would just be an opinion

[fireblade3516]

Lisa I'm not sure what exactly a "windfall" is but as Michael says it isn't something out of the blue, it was mentioned in the early stages and the whole amount is to cover the cost of works needing to be carried out, there are no personal damages included

[Lisa Thomas]

If this was mentioned at the beginning of your IVA then your IVA proposals should have dealt with how it would have been treated. If not then your IP will need to look at all the documentation and check with an insolvency lawyer as to whether or not it is caught under the windfall clause or not. I'm afraid I can't tell you the answer, sorry.

[fireblade3516]

Hi Lisa I've spoken to my IP they will need to look into it as to whether its an asset or not but have said that if it is and is required to pay it all into the IVA I can still request a creditors meeting and put forward a f&f settlement plan.

[Michael Peoples]

Sounds like a common sense approach. If you disagree you would be entitled to ask for counsel's opinion.