Hi all
I have about 18 months left on my iva so it's going well. I was involved in a cycling accident a few months ago, nothing serious, but I have a personal injury claim in progress. Today I have a letter from my solicitor which suggests I will be getting around £1500. Now I have mentioned this to my I.P when it first happened since I feel I am entitled to keep the money. I was told that I probably would be but to send them the details when I actually received the componsation. There are no loss of earnings involved. I am just wondering where I stand? I don't want to hide this from them but how could they find out? If I tell them and they say I can't keep it, should I fight that? What is the law on this?
I had a payout last year, I was allowed to keep it as it was purely for pain & suffering I just had to obtain a letter from the law firm confirming this
the loss of earnings could be different I suppose depending on whether you missed any IVA payments?
I think Foggy has said most IP'S treat it the same way as in bankruptcy
but never worth the risk of trying to hide it
only your IP can ultimately decide
Thanks for the reply as I said my claim does not involve loss of earnings and therefore I believe I should be able to keep it. The report I already clearly says it's it for personal injury and damages to my bike. I will certainly tell my I.P when I get the money. I am sure they will fine they have been very reasonable so far. Do I have any right to argue it just in case they do ask me to pay it? Thanks again
There is no "law" regarding compensation in an IVA and it's retention. However, most IP's follow guidance issued in bankruptcy whereby compensation for pain and suffering can be kept.
However, if your IP is one who thinks otherwise and that the money should be paid in and you conceal it, you run the risk of your IVA being failed as well as the real possibility of ending up in court. Of course it depends upon the amounts involved, but in the past there have been custodial sentences for similar matters.
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 reply . I am going to ask them tomorrow, as I said if they did say I had to pay would you argue it or just accept it? I am sure they will be fine about it. They have been good to me so far, many thanks
Hi
I got confirmation today that I will be able to keep any compensation since it is for pain and suffering. Anyone else in this position is def worth telling your IP and sending then evidence of what the claim is for. My IP has always been very good and reasonable so this has all worked out well #128515; another 18 months to go, thanks all for advice given
Perhaps you can use it towards the end of your IVA to offer a F&F...