We want to pay our debts via our IVA but need inheritance. Please offer any advice.

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1
 
 

Shell.89

User avatar
Posts: 1
Joined: Tue Oct 25, 2016 8:14 am

Post by Shell.89 » Tue Oct 25, 2016 8:14 am
Hello need help me and my partner are in a joint iva debts only total 10 grand been in it a year and my partner has received news of an inheritance we understand this inheritance would be paid into the iva however this would wipe out his inheritance we want to get debt free as this is the reason we entered the iva however both of us including our child have recently had to move back in with my parents due to being in a unsafe rented property which resulted in us having to sell all our belongings as couldn't put them anywhere so we have got to start again with a house which we need the inheritance for (bond fees and household items etc) please offer any advice as we want to pay our debts but also need his inheritance thank you
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Tue Oct 25, 2016 9:06 am
The inheritance is captured within his IVA and he will have to pay the joint creditors plus his own and whatever fees and costs are incurred. If you wish to keep some it will need the approval of creditors and given your circumstances they may allow some to be retained.

You need to ask your IP to call a variation meeting and provide him/her with a list of what the money is needed for.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Tue Oct 25, 2016 9:55 am
Hi

Sorry to hear of your loss.

I'm afraid if your partner is listed in the will the inheritance will be due into his IVA and he will only get to keep some of it if it is enough to pay off the balance of his debts in full plus statutory interest (unless creditors agree to waive their right to it) plus costs.

Depending on the figures involved it might pay everything off or put such a big dent in it that you can put forward a third party lump sum offer to settle the balance.

Please think of it that you will be no different position than you were before except that you might be able to close the IVA/s sooner and it might help you finish the IVAs early and take back control of your finances.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Foggy

User avatar
Posts: 33396
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Oct 25, 2016 10:00 am
As mentioned above, a lump of what will be taken might be statutory interest, which you can ask the creditors to forgive. They often do, given that they are about to get back more than they expected, so worth a try -- that might save you enough.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Michelled0422

User avatar
Posts: 102
Joined: Mon Sep 28, 2015 10:08 am

Post by Michelled0422 » Tue Oct 25, 2016 11:35 am
I had to sign a legal form at the solicitors to confirm if I had an IVA or was bankrupt. My inheritance from my parents will was then sent directly to my IVA by the solicitor and unfortunately it just contributed to a higher return to my creditors and did not reduce my IVA term.
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”