Hi, my sister was going to lend me £15k for a full and final settlement but tonight has said she has a few concerns. She is worried the creditors will snoop into her finances and when they see she has more than £15k demand that she lend me more money.
Is this the case?
Will the creditors want to see details of the account she takes the money from and how much money she has in total?
She also wants to know how she would pay it. Would she write me a cheque or would they take it out of her account.
Thank you for your help. I can see why she is concerned but would have thought it is nothing to do with the IVA how much money she has and where she takes the £15k from.
she needn't worry, they have no right to look into her finances at all. They won't be interested. I think payment would be a cheque from her but it depends what they ask for. They could in no way take it.
Pixie
'Welcome to where ever you are, this is your life you've made it this far, welcome, you've got to believe right here right now is exactly where you're meant to be'
IVA started may 07 ended dec 08
Absolutely not - but your IP will want to do usual Money Laundering checks on your sister with regard to checking her identity and address, so she will need to provide proof of that.
She can send a cheque for the amount directly to your IP.
Money laundering is the movement of large sums of money - usually from organised crime - through various different accounts in an attempt to disguise the original source and eventual payee.
Professionals such as IPs, accountants and solicitors are legally obliged to ensure that monies coming into their hands have not originated from criminal sources, and we are duty bound to report any suspicions. There are harsh penalties for ingnoring this - I know of a solicitor who received a four year jail sentence for accepting a cash sum of £80,000 for the purchase of a property, and who had not carried out the usual checks.
We have to do it - and it is tedious for noth sides, but part of life I am afraid.
Creditors do not need to know her name. Your IP will and after he checks her credentials all that he has to say in the letter to creditors offering a F&F is that a family member has offered the monies - so don't worry. Good luck
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Once the full and final settlement is accepted by your creditors, your IP should close the case down and therefore you will be relased from both the IVA and the debts. This should be done within days of the creditors meeting.
And a Certificate of Due Compliance issued and that is the end of it.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
