Stupid Question Mk2

[pms9999]

Under my IVA I my repayments come to £16,522.78 that includes the equity in the house.

Does that mean that if I got that value tommorow in a gift or whatever I would be able to pay it all off and clear the IVA or would they still expect that value and 60 payments on top?

So my long winded question is my money owed now the 16.5k that the creditors have accepted or the original debt of 59k?

[Andrew Graveson]

Hello pms9999,

This will depend on the terms of your IVA. Is there a "windfall clause" for example?

[pms9999]

I have this clause

Assets, gifts or material sums of money (exluding normal regular income: If I recieve during the period of the arrangements any material sums of money (over £500) or asset that may be realised to pay creditor, I will inform the supervisor within ten days of reciept. The supervisor will then determine the timescale for payment and may call a meeting of creditors to extend the arrangement if neccessary. The limit on funds to be paid into the arrangement will be the payment of all costs of the arrangement together with the full repayment of creditor clims plus statutory interest.

[pms9999]

I don't have a clue what the legal definition of a "material sum of money is either".

Unlike most legal documents they don't really offer definitions...

[MelanieGiles]

There is bound to be a windfall in the IVA - this is very standard procedure these days and the clause that you have would definately capture the money (less the first £500) and you would then still have to make your agreed IVA repayments.

[pms9999]

Hi Mel,

Say the windfall or the sum of money was say 80k, how much would goto them? all 59k or £79.5k (I've taken off my 500 squidlys!)

[MelanieGiles]

Sufficient to pay off the remainder of the debts in full, the outstanding costs and statutory interest which runs at 8% per annum from the date your IVA was accepted.

[pms9999]

Cheers Mel,

thanks for the advice, so how do these full and final settlements work then? If they can get the full whack anyway?

Have you got to be a bit cute?

[MelanieGiles]

A full and final settlement generally works on the basis of a third party offer or the realisation of an asset. A windfall payment is unexpected, is a bonus if you like, and is unlikely to result in an acceptance of a lower offer by creditors - as your circumstances are unchanged.

I think you are comparing apples and pears a little here!

[pms9999]

Mel,

I think it's just my naievity in what is going on.

All I'm thinking is that say I get a 30k commission month (it's unlikely but I have done it once before).

When it gets paid could I go to my IP and say "I've got 30k to clear my IVA" or do I just let them take £29,500 and pay it off the debt and keep paying £283 a month?

[MelanieGiles]

If you get that paid as commission, is this not caught be the 50% uplift provision?

[pms9999]

My IP said today as far as he was concerned that any commission would stay with me and he didn't conclude that as a windfall or anything along those lines.

He said some might disagree but that was his decision......

[MelanieGiles]

Would like to seem him justifying that one to the creditors to whom he is responsible. Do you mind telling us which firm you are using?