If my original debt was appeox 70,000 and I now have an IVA in place. Should I inherit a sum of money does that go to pay the original debt or the agreed amount payable under the IVA arrangements. ie if I inherit 80,000 have I lost all but 10,000?
Hi
You owe the full amount in an IVA, less any dividends paid, until your IVA is concluded.Only then is the debt written off.
So yes, you will lose most, if not all, of the inheritance [remember you will have IP fees to pay in addition to the original debt]
Regards
If you are aware that you are about to receive an inheritance it might be appropriate to offer a lump sum in full and final of around 85% of your original offer in your proposal - you could possibly loan such lump sum from a friend or family member - this might enable you to keep a reasonable proportion of your potential inheritance
Last edited by David Mond on Tue Dec 30, 2008 9:26 pm, edited 1 time in total.
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.
David Mond wrote:
If you are aware that you are about to receive an inheritance it might be appropriate to offer a lump sum in full and final of around 85% of your original offer in your proposal - you could possibly loan such lump sum from a friend or family member - this might enable you to keep a reasonable proportion of your potential inheritance
Is this allowed David?? Just that if I win the lottery could I then not claim my winnings but borrow from a family member to offer a F&F then once its settled claim my lottery winnings??
(oh my lottery win will be the usual tenner every 3 months!!!)
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
The spirit of entering into an IVA is to pay as much as you possibly can to creditors, not avoid your debts or try to get away with paying less than you are bound to - and I think that most people who are in IVAs would share that view.
However an inheritance is not an inheritance until you become entitled to it.
I was giving my advice to what I believe to be a legitimate way to agree with creditors a F&F prior to any receipt of an inheritance - it is fair planning. If not done prior to the receipt of an inheritance then all goes into pot to pay creditors 100p in the £
Last edited by David Mond on Wed Dec 31, 2008 1:17 am, edited 1 time in total.
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.
As someone who is paying almost 100p in the pound back over the term of my IVA and someone who has the possibility of inheritance during this time - I would be willing to loose all of my inheritance if it meant that paying back my creditors would be completed earlier along with IP fees and stat interest........although it concerns me that my inheritance would go in an instant and it could be used as a deposit for a new house - I also appreciate that all those years of borrowing and spending have now caught up and those creditors deserve to have back what we borrowed! On the flip side of it - if my IVA was to end tomorrow I would get back the £1200 a month I am paying into it - this would soon mount up to a healthy deposit for a home !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Everyone knows the rules about windfalls when they enter into IVAs, and do so with the understanding that should this happen the money has to be handed over.
I am sure the creditors who entrust us to deliver the returns to them, would be concerned if they thought we were assisting clients to avoid the payment of windfall money, but everyone is entitled to their own opinion on this point.
Avoiding or arranging prior to receiving is allowable - evading is not!
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.
