Definition of windfall

[foofy71]

I have a question I hope someone can help me with.

We have had an IVA running now for 5 months. I was recently involved in a car accident and recevied 'compensation' for the injuries sustained. This money is supposed to be for any costs I incur during my treatment which may lead to 2 operations. I am being told that this money is a windfall and therefore I have to surrender all of it?? However this has posed another question for me, my husband (who is also included in the IVA) is military and currently serving overseas. If he were injured and compensated for eg the loss of a limb would we have to surrender that as well???

I have checked the wording on my paperwork and it refers to gaming or lottery wins and inheritance but not insurance payouts.

I'm not trying to cheat the debt we owe, we would certainly have given some towards it, but I'm struggling to understand why I should bother paying out for insurance if there is no benefit to us in the event of a claim. If I have to surrender all this payment, and then in future months am out of work (I am self employed) this money would have covered my wages???

I have spoken to my IVA provider and feel I am getting nowhere as they just keep saying it's 'unexpected money gained, therefore a windfall'.

What do I do?

[neverending]

Hi
I think you have a fair point.
If you receive a compensation payment then I would think that you could argue the case that any extra expenses ,that you incurred as a result of the accident ,should come out of the lump sum with the balance going towards your IVA.

[MelanieGiles]

Hi foofy

I do not necessarily agree with your IP here - the basis for my reasoning is that personal injuries claims are exempt from bankruptcy proceedings. I suggest that you take specialist legal advice in this regard before you hand any money over to the Supervisor.

You also need to carefully check the wording or your proposal and the associated terms and conditions, together with creditor modifications to be sure. Why not suggest a compromise to your IP and offer 50% of the proceeds.

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