My car went into a garage for restoration before my iva started and it wasn't listed as I wasn't sure if I'd ever get it back as it was a pile of bits. Now in the meantime it was sold by the garage without my consent so it'll be either coming back to me in one piece or the new owners will have to pay for it again and I'll get the money. Now does this count as a windfall or not?
Tim
I would think this is an asset of the IVA rather than a windfall and the money should be paid to creditors. However have a word with your IP and see what they think.
Ok but would that mean it would count towards my iva amount due - I've less than £5000 left to pay so if I get the money it could clear my iva - or on top of the amount in the same way that my ppi refund was used to top up the amount the creditors would get?
Tim
You will never have to pay into an IVA more than you owe.
However, the down-side is that what you owe can include fees, interest etc... so may be more than your paperwork states.
If you don't have much left to go and you get the money you might be able to make a full-and-final settlement.
If you get the car back and it's basically a worthless pile of junk then I wouldn't bother doing anything about it at all as it would have to have significant value to be considered an asset.
I'm not sure where the boundary lies in terms of value. The only guidance I've seen states "low value" which could mean pretty much anything.
You could ask your IP how much an asset has to be worth before being considered.
Right here's some news - I've got a meeting of the creditors on Thursday as my IVA breach level is £1776 and I've got arrears of £2822, plus I've already got another 5 overdue payments added onto the end of my iva so it will have run for 7 years and 2 months. If anyone has been in this situation before would they know what the likely outcome will be? As I've got no assets left (that car looks like it won't be coming back now) and I live in a council is it possible that the creditors will make me bankrupt? My accountant has it's own IP who has suggested asking for my iva to be finished early as I clearly cannot afford my repayments as they are which are £582 a month or maybe take what is left of my iva from the inheritance from my mums house when it is sold but probate will take about 9 months then it's got to be sold so that could be a long time yet.
I agree that if the payments are unsustainable then monthly contributions should cease. However you mention an inheritance and your share would be a windfall and payable to the IVA. You must have notified the IP when you became aware of the inheritance and this will be captured. However the extra money will mitigate any reduction or suspension in payments so creditors may be sympathetic to early closure once probate has been settled.
I agree with Michael and would ask for payments to be suspended, pending probate, at which point the inheritance would be captured and closure considered.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Ask for a variation to pay what is affordable each month plus the inheritance windfall, if you have no disposable income then ask for suspended payments until the windfall is paid in and your IVA concluded
Thank you very much, so should I ask for payments to be suspended and some of the inheritance to to used for full and final payment as well as windfall as the amount to complete my iva is around £4500.
If your payments to date + ppi refund + inheritance totals + ip fees + plus possible statutory interest = more than your original debt you will receive the balance of your inheritance to do as you wish with.
If the above does not reach the full amount of original debt a full and final can seek closure.
All of your inheritance may be taken into the iva.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Thanks for the help everyone but it's thicko time from me!
My original debt as £62,050 the IVA was for £27,456 and so far I've paid
I've paid a total of £22,394. Now I don't know how much of an inheritance I'll get (or when) but lets assume its around the £50,000 mark. My IVA firm has said the funds for 100p dividend are now £68,093 so would the £50,000 be used to top up what I've paid to the 100p dividend and I'd have about £4,000 left over?