I recently (4 months ago) had a f&f accepted on my IVA. My parents both died in an awful car accident, I stand to inherit 750K from their Estate. I have chased my iva company up and they said my certificate should be sent any day now. I had no PPI at all and some everything is tied up. My debts were nearly 90K I ended up paying 21K. I have told the Solicitor has adviced me no to declare this money as it'll take months to sort everything. Will this show up anywhere?
Hi Sara. I am so sorry to hear of your tragic loss.
Legalities and timing apart, and this is a purely personal reaction, I would take your solicitor's advice. If your IP decides he wants a bite of the inheritance at least you can argue about it after you have the funds in YOUR bank, rather than theirs.
The administration of a deceased estate is a matter of public record, however, someone has got to be specifically looking, which, unless given cause, most IP's will not be doing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am stunned that a solicitor would advise you not to say anything. I am awaiting a completion certificate after 5 hard years of payments and hope not to be in your position but I really believe in Karma. We have paid all we could for the time we said we would. We also agreed to pay back what we borrowed and will be forever grateful to cleardebt fir arranging for our creditors to receive less. Inheriting £750k having paid £21k out of £90k and trying to be deceitful about it would not sit right with me personally. There is surely no need for deceit if your F&F has been accepted? I want mine to end knowing it's all above board.
It's not a case of deceit, but timing. I agree, if the money is rightfully due to the creditors then it should be paid.
A lot will depend upon the wording of the F&F, as to whether the debtor has been relieved of responsibilities under the terms of the arrangement.
Some IP's consider the arrangement to be fullfilled after the final payment, some do not.
If the IP is involved at this stage the inheritance will be, effectively, frozen pending the IP's cogitations. Better the debtor holds the funds themselves pending calculation of the amount required ( if any) to be paid to the creditors.
To be frank -- if the solicitor is advising hiding the inheritance completely he could fall foul of the law himself. or, at the very least, his professional body.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Having inherited money myself at the end of my iva your solicitor should be advising you to declare it ... you should be asked to complete a form to confirm no bankruptcy or insolvency outstanding.
If you have to pay the full amount of money owed at the outset then so be it as you have more than enough coming to do so and to start your debt free life
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Hi Sara, just wondering if your full & final was accepted before the accident of your parents?
I think if that's the case:
You could never have predicted such unforeseen circumstances after your f&f was accepted & you should take the advice of your solicitor on board .
IVA COMPLETED & CLEAN CREDIT FILE.
An old bible proverb says this: the rich one rules the poor, and the borrower is a slave to the lender.
My Hubby inherited while in the last few months of our IVA. We thought we would not tell any one but the guilt was so bad we didn't sleep so we told our IP. The out come was they worked hard for us to keep as much as we could while satisfying our creditors. At least we were able to sleep again knowing we had done the right thing.
You are under an obligation to notify the IP once you become aware of any windfall and when you receive the funds is irrelevant. If the variation was approved before the accident the money may be yours of right and if in doubt get legal advice from an insolvency lawyer.
I actually recieved the cert this morning. (after loads of chasing!)
I will have to sign forms but the estate is still being sorted via the legal team.
The accident happened after my F&F was accepted and paid. I am not going to declare this as far as I am concerned my parents hard earned money does not deserve to be put into my mistakes which I sorted myself.
I do not feel any guilt with this at all. I was exploited by banks whilst at a really bad time in my life. I am still getting over the shock off loosing my parents and i don't need IP'S going through their estate and carving it up for their own benefit. My parents legal team have read the contracts and have advised me again this morning there is no real deceit involved in this what so ever. I have not recieved any funds what so ever and won't for a good few months.
It is good that you have legal advice and personally I would tend to agree with it. When the full and final was accepted then this should be it except for assets which are to be realised. When we offer a full and final we also state 'plus any financial irregularity claims' which allows us to continue on collecting PPI etc but would not entitle us to subsequent windfalls.
Others may have a different view and it may come down to legal opinion on what was said in the variation but if your advice is to say nothing and you have the completion certificate you are entitled to move on with your life.
I IVA tought me valuble lessons with my finances. I needed to grow up and learn to budget! I will never be in debt ever again. I worked hard to make payments, Its not easy at all!
I feel ready to move on with my life debt free.
In these very exceptional and sad circumstances, I can confirm that I fully support Sara and her solicitors advice. I am so sorry to learn of your very tragic loss Sara - and hope that the closure of your IVA will at least bring some peace of mind for you, and allow you to begin to look to the future - as your parents would have wanted you to I am sure.
