Used unexpected bonus to pay off loans from parents. What will happen ?

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Elaine.m

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Post by Elaine.m » Fri Aug 29, 2014 8:45 pm
We've been in an IVA since 2009 with my husband due to finish in December 2014. I still have another year to go on mine. In July I received an unexpected bonus. Before my wages have always been the same every month. I have used the bonus monies to pay off some loans our parents gave us. I have not advised OUR IP what can they do to me if I do not have the additional monies. Getting very stressed but our parents deserved some payment after waiting so long
 
 

Foggy

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Post by Foggy » Fri Aug 29, 2014 9:06 pm
Hi. As you know the bonus should have been declared at the time and 50%, or thereabouts (depending upon your individual terms) should have gone in to the IVA.

This money will be regarded as still owing and you need to agree a way to get this amount back into the IVA estate with your IP. Possibly an extension can be agreed to cover the missing amount.

What can they do to you if you do not have the additional monies ? Ultimately they can fail the IVA, which will, in essence, flush the last few years down the toilet. The creditors will add back the unpaid interest over the last few years and you will be back to square one. However, a good IP will do whatever they can to stop that happening, but the money does need to be paid back in.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

dancer

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Post by dancer » Fri Aug 29, 2014 9:10 pm
Hopefully they will agree to let you pay over a set period of time.
My bonus was always addressed at review time - when is your review due? Could you negotiate for any extra payments to coincide with your husband's IVA ending so that he effectively extends his payments to cover your shortfall?
 
 

Elaine.m

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Post by Elaine.m » Sat Aug 30, 2014 4:52 am
Thanks dancer and foggy for your replies. In the event of my Iva failing will my husband be affected?
 
 

Foggy

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Post by Foggy » Sat Aug 30, 2014 9:50 am
Are your IVAs interlocking ? Ours had clauses saying that if one failed the other would as well -- worth checking, just in case.

Hopefully you have a helpful IP -- Dancer's suggestion seems a good way round this.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Elaine.m

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Post by Elaine.m » Sat Aug 30, 2014 11:57 am
Thanks again I have a telephone appointment on Monday so fingers crossed I can get myself out if this mess
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