FULL & FINAL SETTLEMENT

[ellie 553]

We are hoping to complete the sale of our business on Monday at £150,000. We owe aprrox £200,000 and have spoken to an IP about a full & finall settlement IVA
We have paid the IP £500 and they are just starting work on the proposal (the sale has happened a lot quicker than expected)
My question is - when we receive the money from the sale, is it ok to put it into our own bank account until the IVA has been arranged and approved. Also - is it ok to use any money at all for living expenses eg flat deposit / rent as my partner has no income and no where to live from Monday (he lives above the business and works there) although he should get a job in the next few weeks.

[ellie 553]

Thanks ladyh ! Our IP started work on the basis that our proposal would be a full and final settlement on the sale of the business within the next 6 months. When we first spoke to him he said that anything around £100,000 would be enough on debts of £200,000.
Since then we received the offer of £150,000 and have accepted etc. He originally told us that we should take money out of the business (income) to pay for any moving expenses, but this isnt now possible as we are not going to have the business to fund this income now !
I cannot help my (ex) partner as I had to borrow £1000 from my mum to rent a place myself. As the proposal has not even been drawn up or sent out the amount of money has not been specified yet to our creditors.
This could take months and months to sort out as we will have to get our final tax return done etc but at least it's a start!