IVA and receiving compensation

[NJ1973]

Hi all , i've been paying my IVA for just over a year now and a few months ago i was involved in a serious accident while cycling to work.I've been advised that i could be facing a fairly substantial compensation payout that could be as high as £30,000.
My original debt was £48,000. that was scaled down to £25,000. including fees for the IVA.

My question is if i did receive the amount mentioned or similar what would be the outcome regarding my IVA? Would they want the whole amount to pay agreed debt or would they take the lot and say 'this can towards the original debt and you can carry on paying'?
Thanks for any help

[rayb]

Should not really say this but if you do get the compensation it may be worth your while not declaring it and offer a full and final settlement to your IP to conclude the IVA but make sure you state that the money is from a 3rd party i.e. family member etc

[debbiw]

Rayb, That would be dis-honest, and there has to be a level of trust between IP and client. I would suggest being honest, at the end of the day, an IVA is so that you can pay as much back as possible to your creditors, as you borrowed the money in the first place. I agree, its not ideal having to pay it all over, but thats what you signed up to do.

[MelanieGiles]

Check your IVA terms and conditions to see if personal injury claims have been excluded. They certainly would be from bankruptcy proceedings, and some IPs will seek to mirror this in their own standard documents.

[luluj]

Honesty is the best policy - you spent the money so pay it back - your will feel so much better if you pay 100% back!

[jpj]

As far as im aware banks notify the Inland revenue of any transactions over £9,000 anyway so you couldnt hide the money anyway RayB !
NJ1973 didnt say wether her income has been affected by the accident. surely if the money is to cover loss of earnings its not strictly a windfall.

[Adam Davies]

Hi
As Melanie states this is a grey area,in bankruptcy this would be excluded and really should be the same or an IVA.
Check your terms and conditions carefully
If it IS excluded from your IVA then you could look to offer a full and final and conclude your IVA
Regards

[NJ1973]

Thanks for the replies , have checked the terms of the agreement and it states "any monies whatsoever must be paid" be it inheritance or bonuses etc no mention of personal injury claims so i presume this is included? Also i have approx £19000 of the IVA left to pay over the next 47months-if i was to get £19000 compensation is it feasible this would pay it all off or would it only go towards the original debt?

[anais743]

In my line of work I irregularly recieve compensation for injury on duty ( being spat on,assalt police etc) from the Criminal injuries compensation board. How would this be affected and would it depend on the T&C negotiated by my IP if iva sucesfull?

[MelanieGiles]

To NJ1973 - the money will be treated as a windfall and will need to be handed over on top of your ongoing contributions.

To Anais - Make sure that your IP puts the exlusion clause within the proposal. What a horrible job our policemen have to do these days.

[emma_t]

Hi NJ1973

I hope you are ok now and recovered as I would think you must have been badly injured to be expecting compensation of that level

jpj has a good point as if you had loss of earnings for any length of time or need any ongoing physio or anything surely some ofthmoney would be allowed for this?
I don't know as am no expert but you should speak to your IP and find out, I would never 'hide' the fact you recieve any money as it is so dishonest and would break the IP/client trust and you would always worry that it would be uncovered.

[Adam Davies]

Hi
Really if personal injury claims are exempt from bankruptcy they should be exempt from IVAs..........why should it be any different ?

[james.c]

I had thought about claiming of banks for over charging etc, but after a prevoius post on the forumn i decided not to, becasue if i got the money their would be alot of time of hassle on my part, then it would be classed as a windfall and paid in to the IVA. Unless it was that big i ended up paying 100p to £ that would help end the IVA early which it would not, then it was not worth my while doing it.

But as Andy as said if its exempt from bankcruotcy it should be from IVA's but their is something things you get with bankcruoty that you dont get with IVAS

[NJ1973]

Hi once again thanks for the replies.
I spoke to my IP and gave a vague idea of what happened accident wise and also an estimate of what i may receive and my worst fears were confirmed even though i have had to subsidise a lot of medical treatment and additional travel expenses. What is the worse that can happen to me if i didn't declare this if/when i receive a compensation payment? I understand i should be honest and that i borrowed the money so therefore have a duty to pay it back but i've also suffered hugely physically and on an emotional level since , i feel slightly let down that i cannot keep even my expenditure. Would this stop the IVA agreement or even be a criminal offence not declaring the full amount?Many thanks for any help

[MelanieGiles]

You will default on your IVA if you fail to declare the money - and it simply is not the right thing to do.

Why not consider having a chat with Paul of Reviva, who posts on the forum and offers independent advice and mediation between clients and their IP's. Paul is not an IP, so your own IP will not feel threatened, and I am sure that this would be worth your while.

Paul - are you around this afternoon?