My husband is now a full time carer for our daughter but we had Halifax tmpp with a carers element so they have paid out we only have 1 year left on our IVA will they take the pay out even though we need the money as my husband can no longer work
If this is an income protection policy allowed within the IVA there should be no problem. You can continue making the agreed monthly IVA payments as your income will not have changed.
As I understand it, the whole point of the TMPP is to pay out if your circumstances change. I would think it would therefore been seen as income by your IP rather than an asset due to be paid into the IVA. As it sounds like your husband's circumstances have changed this should all be part of the next Income review. Your contributions might be altered accordingly but only to what you can afford and might even reduce.
This is income replacement and so should be regarded as income and averaged out accordingly. I doubt the net effect would be to increase your disposable income, more likely to reduce it. Much will, however, depend upon how helpful your IP is.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Also given the circumstances you have identified and dependent on your IVA company they may help in asking creditors to accept payments to date.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Had a long conversation with someone from dfd which was no help at all they said because its a lump sum then it has to be paid in as a windfall they said I had 5000 left to pay if a family member could help but I'd still have to pay the carers payment also I feel sick and just want to cry .
Ask them to put it in writing and that is what the IP has stated - not what they think.
I can't believe that this is a routine query where they do not have to seek support.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
You should speak to someone higher up. If this money is income protection then you could use a portion of it to clear the outstanding balance on the IVA. I am sure creditors would be sympathetic to such an offer and perhaps you should ask for a variation to be called.
Surely the lump sum has replaced lost income and this "lost"income was used as the calculation for your IVA payment so I can't see why it would be seen as a lump sum.
Did you manage to make your IVA payments before receiving the insurance pay out ?
I agree with the above posters, if IVA payments have been made, this award simply replaces the lost balance of income you have been struggling on without.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you all for your responses they have asked for a copy of the paperwork from the Halifax and the amount paid which I have passed on they gave me a 4 month payment break until we received the payout I am now using the money to start the IVA payments again I have worked out our income and expenditure there is a spare £16 to pay into the IVA .
They may want to four missed payments from the lump sum, given your circumstances and very small surplus now available I would ask your IP to consider proposing payments made to date [plus the missed four payments] as full and final settlement to conclude your IVA
