Where a preferential payment of a lump sum, (to a family member), has taken place within the last 12 months, would this cause problems if trying to sort out an IVA plan please? I understand that this can have serious implications for the recipient of the lump sum, (and the debtor), in bankruptcy, but I don't know whether it would have the same effect with an IVA?
The lump sum was given at a time when the debtor was already 'insolvent', but the family member had lent monies to the debtor in good faith, believing that the monies would be repaid from any future lump sum payments, as a priority. Thank you for any advice.
This would have to be disclosed within the IVA as it is something recoverable in bankruptcy. This could have an impact on how creditors view the IVA depending on how much was involved, how the funds were raised to repay the debt etc.
