We have sent a letter to our IVA company with our offer of a full and final settlement. The money is from an inheritance payout, however my husband is facing redundancy in the next couple of months and our IP has said that creditors may accept a lump sum as a full and final based on our circumstances. We were waiting to see if our offer had been accepted for variation, and they rang us today to say that it has. The meeting will be scheduled for 4 weeks time, however they are asking for the funds in the next couple of days or it will be a breach of contract? Is this normal? And what happens if the full and final is not accepted will they just take the payment anyway on the day? Should I ask my IP for something in writing saying what will happen to the money whilst the meeting is due to take place?
Many thanks
They are obliged to collect all windfalls, and therefore I do concur that if you have not paid them into the IVA, then you will be in breach.
The money is already pledged to your IVA, so if your offer is turned down then the inheritance monies cannot be refunded to you. This will all be covered off presumably within the wording of your own IVA proposals?
Inheritance is covered by windfalls and as Mel says it should be paid in, irrelevant of whether the variation is approved or not.
If your husband faces redundancy, then the report to creditors regarding the full and final offer should reflect this change of circumstance and be listed as a reason to agree to full and final offer ....
Good luck with the offer and hopefully it will be accepted so that this stage of your iva journey can end, and your husband finds suitable new employment.
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