Hello, a quick question but seeing that things have been dyer over the past couple of year's along with the IVA etc, parents have decided to give us cash for a new (well not so new) but a 10 year old extra runaround car and a holiday (this country and not 1000's) which is very kind and no doubt will lift spirits. As this is neither a windfall, PPI claim, lottery win etc and kindly given to help us out, not loaned to us, am I right in thinking it has nothing to do with the IVA?
Not quite. LeFran. If they give you cash, that will constitute a windfall and be grabbed by the IVA -- however, if they gift you a modest car and a modest holiday that will be of no concern to your IP.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy, it's odd though as it is really their money not mine with the kind, thoughtful intention of us obtaining the said items in mind. If there was potential of this being grabbed for an IVA, I think the parents would politely tell them where to go and quite rightly confirm this if need be. Although what does constitute a gift, is it just material items given or bought for you and not cash to help out in anyway? So, are you saying that if for example I could not afford Xmas but they bought my 4 children everything and no cash, then that would be Ok?
It's all down to common sense really -- cash gifts are unearned income and are windfalls -- most proposals these days allow you to retain windfalls whose individual amounts are less than £500. So a gift of £499 today and another of the same amount in a few weeks would go without remark. Do this every month and your IP will likely consider that you are taking the Micky.
In your Christmas example, if your parents bought your kids everything that would be OK -- indeed, if they gave THEM the cash, that would be OK too.
Common sense and honesty -- some things can be bent, but not broken!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks again Foggy, fully understand, just wanted to be clear as their intention is completely one of helping out as they can see us living with a tight budget. Now, if they could just stretch a bit more and buy us a holiday to Florida then that would be great, but very unlikely!
Can i also ask how you intend to pay for the upkeep to the "extra runaround car" ? If things have been tight already how will you manage the additional insurance, tax, mot and fuel for this vehicle? Has your I&E been reviewed by your IP?
Lovely to have this opportunity, but if you go ahead then why not find a car you like, and then take the parents with you to pay for it ..that way the money is not going through your account and cnnot be used for anything else and wouldn't be available to your creditors etc.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
I don't agree that cash gifts would be windfalls, but do check with your own IP to see what their view is.
Surely there has to be some point at which the monies would be due to the IVA, Mel. A gift of, say £300 - £400 maybe -- but what if one was gifted £3,000 - £4,000?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
A 'gift' and 'windfall' are 2 separate things, (I recall a lengthy debate on this forum several Months ago on this subject, involving a 'gift' of several thousand £).
If you are still concerned (it is possible that your IVA case officer may take the view that a cash gift is a windfall, because they do not know the difference), then the safe way around this, to ensure you keep everything, is:
Choose a car and Holiday, but have your parents pay for it directly; and / or
Ask for your parents to give you cash in hand and don't declare it (nobody will know).
Don't whatever you do, have them pay it into your bank account, as your IVA firm may ask to see bank statements, and then you are rumbled.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
While I would never condone hiding things from my IP and I'm sure she realises I never due to the amount of emails I sent. I would say that a gift is such a gift for you to use as you wish. If I were given birthday money (I wish) then I'd expect to treat myself to something nice.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I would still counsel to err on the side of caution and not touch large amounts of cash. There are some IP firms (few and far between thankfully) that would take the kid's pocket money, given the chance!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for the advice everyone. As mentioned this is not a new car and not an expensive holiday by no means. There was mention of Tax, MOT, insurance and petrol by luluj. Well, balanced between two cars we would probably use about the same petrol. MOT, who knows (who ever knows!) but insurance, your talking £240 a year plus £200 a year tax. We do need another car though as with having 4 children, 3 go to different schools and not within walking distance to all 3 (they are too young anyway)and they all need dropping/pickup the same time so would come in very handy for that instead of trying to run around in one car. From my point of view, I can fully understand why a windfall would be picked up and quite rightly disclosed. If I won a substantial sum then the offer of paying towards my IVA would be in my mind and to pay it all off would be amazing and get shot of the matter. However, with help from family by way of cash for a modest car and very modest holiday, well, on review I think it's quite sad that we cannot be given a gift of either cash or paid into a bank account from family to help out without worrying whether it will be snapped up or not. I guess if the source of the money is required then that can be provided. I think a clearer distinction should be made regarding a gift or a windfall as they are clearly two different things and this should not really be a prison sentence for 5 years where you have nothing. If parents/relatives want to help us out then they can, as it is much appreciated. Anyway, again, thanks for the suggestions/advice, it really is also appreciated and I am sure there will be many more queries during this journey (unless I get a large windfall!).
I stand by my opinion - and would challenge any IP out there who would seek to claim that monies or assets gifted to a third party constituted a windfall. A windfall is derived from a right to receive something, but a gift is discretionary and not a guaranteed right.
