pay off the mortgage before my creditors?

[polly.f]

If I am subject to an IVA, yet still have a mortgage and I receive an inheritance, am I within my rights to pay off the mortgage before using the money to pay off (or reduce dets to) my creditors?

[MelanieGiles]

Hi pollyf and welcome to the forum

No - your inheritance money must be paid over to your Supervisor, assuming you have the usual windfall provisions. Is there going to be enough money for you to pay off all of your debts and the costs of the IVA? If so, you may also have to pay statutory interest as well.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva experts]

Hi Polly,

I agree with Melanie, you should check your IVA terms and conditions as usually the creditors will put a clause in the IVA that 100% of any windfalls must be paid towards your debts.

A windfall is usually described as an amount of money that was not expected to be received eg. inheritance or winning the lottery.

Best Regards. IVA Experts

[polly.f]

So if I were to convince a (living) benevolent relative to lend me the money would I be better financially to use this to precisely pay of the IVA at the reduced amount my creditors have agreed to?

[MelanieGiles]

This is a possibility, third party contributions are usually acceptable to creditors, but you will need to ask your own IP for guidance as to the amount you may be required to offer.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk