in an IVA and inheriting some money

[gillian.b]

Thanks for your help

[MelanieGiles]

Hi Gillian and welcome to the forum

This is a windfall, and I rather suspect that you will have to send all of it to your IP for the benefit of your creditors. Seems fair if you have asked them to write off some of their debt!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[iva experts]

Hello Gillian,

I agree with Melanie that this would probably be classed as a windfall and 100% will need to be sent to your I.P. I would contact your I.P when you are aware of the amount and ask them for their advice.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[cr15py]

I'm not condoning this, but the cynical part of my mind thinks that if your family know about your IVA, what would there be to stop them leaving the £10k in one of their savings account for 4 years and then letting you have the money once the IVA has finished? Or drip-feeding you £100 a month in cash or whatever? Are there measures in place to stop this?

Visit my blog at http://cr15py.blogs.iva.co.uk

[Skippy]

If that happened and it came to light would it be classed as an after acquired asset or does that just apply to bankruptcy?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[lily]

It is illegal to pass money inherited in a will to someone who is bankrupt and it will fall on the executer as they have to swear to the judge that they will carry out the wishes in a legal and just manner.

I think giving vouchers is OK though.

lily

[MelanieGiles]

If the money is payable before the bankrupt is discharged, then it falls due to the estate and has to be handed over.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ellie 553]

What happens if it is left in a childrens account or a child trust fund

[Beechy]

Don’t try to be cleaver by trying to evade/hide the money if it is for you, as these things have a nasty habit of coming back and biting your bum.

Dave Beech

[Henry]

Hi evryone,

New poster here so apologies if this question has been covered elsewhere. If my IVA is approved (for approx. £22,000 of unsecured debt), what happens if i inherit say £18,000 in the first year? I appreciate i will have to give all of it to my creditors, but would i still have to continue in my IVA? At present i am looking to pay back approx. £200 a month. If i did this for the 5 year period and also gave over the inheritance, i would have effectively paid them around £30,000!

[MelanieGiles]

You would pay until the debts and the costs of the IVA had been paid in full.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[cynth]

What if you are in a DMP? do you have to hand it over?

Cynth

[MelanieGiles]

A DMP is not a legal agreement but more of a gentleman's agreement, so there are no rules. But I would have thought that most people would want to use the money to pay off their debts.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp