This sounds like a windfall and as such should be declared. It is likely that you will havce to pay over all the money but if you need some for a specific reason your IP may call a variation to allow this.
If you do not declare this money you could put your IVA at risk and even face criminal sanction.
It does seem there's a certain ambiguity to how windfalls are treated vs. additional income.
For example, this month I earned over £2k in commission and under the 10/50-50 rule I'll be able to keep what will probably be just under a grand after tax and NI. But if I'd had a £2k windfall, it's possible the whole amount could be taken into the IVA?
I've never had a windfall so never had to find out but it does seem strange that some money you can keep a chunk and others you can't?
Last edited by thisusernameistaken on Sat Dec 20, 2014 10:04 am, edited 1 time in total.
A windfall is seen as something you were not expecting and, basically, did nothing to get. Therefore it is seen as fair game to take it all as it is usually a once in an IVA occurrence.
10/50/50, however, covers money you have earned and, as you have worked for it, you deserve a share. This will also encourage you to do it again and again, therefore benefitting creditors throughout the IVA term.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014