Hi Folks
Right in a nut shell, 4 months ago I had a nasty accident on the way to work. Scaring and stitches to face. The party involved have admitted liability and I'm in the process of claiming. I have the £500 windfall clause which I'm guessing this may included.
Q1- my aging car won't last the duration of the iva and I don't want to take a payment break in order to purchase another vehical, so could I use a percentage of my compensation to get another car to cover the next 5 years in my iva, or would my IVA company take the lot ?
Q2 is there anyway my IVA company could find out about the compensation without me telling them or banking the cheque ? (I know I would be in breach of my IVA)
I would of been up front with my IVA company as I knew they would use common sense, but as I've been sold on to another firm who don't seem to be particularly great, I would prefer your input first
Firstly you should always keep your IP informed as it is potentially criminal to not disclose assets. However your claim may well be for 'pain and suffering' which is usually exempt anyway so declaring it may not lead tot he loss of anything anyway.
Hi my initial advice would be honesty is the best policy as just this morning there is a current post about an IVA failing due to non-declaration of income. However, all that said the pain and suffering part of your claim can often be retained, check your proposal is anything in there? Do talk to your IP and I know it's not easy when no relationship has built up yet but tell it how it is and hopefully they to will demonstrate a common sense approach to this.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
The pain and suffering element of a compensation claim is usually treated in the same way as under Bankruptcy, in that the debtor is allowed to retain that portion. However, there is no hard and fast rule that can determine how an IP will actually treat this money.
I believe your previous IP would have allowed you to keep it, and hope the new IP takes the same view.
Even with the risk of having to pay it in, I would always advise honesty, as you would not want this "sword of Damicles" hanging over you in the years ahead, I am sure.
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 your advice, I have checked my proposal and under windfall provision I have the £500 clause and "for the avoidance of any doubt this would include any windfall, settlement, gaming, lottery win or compensation for personal injury, but exclude any entitlements under occupational or personal pensions in line with the bankruptcy of the welwelfarr reform and pensions act 1999" ???
I don't know how much compensation I would get as I'm still having ongoing Physio treatment etc etc.
Loved Money, Hate Credit, Road to Recovery.... IVA started 3/3/14 -- IVA F&F accepted 18/5/17
It may require a variation to exclude this money and buy a vehicle but it could be done. Perhaps you could offer the settlement less x pounds for a new car and that might be fine to creditors.
Ultimately what incentive have you to pursue a personal injury claim if the beneficiary of this claim is your creditors. If you receive legal aid it may well be withdrawn if you are not the beneficiary as legal aid will not fund a case for the benefit of your creditors.
To be fair I assumed (not always great) that I would be able to keep a percentage for injury's etc
Depending on the value of the claim my intention was to purchase a small run around for about £2500 to see me through my IVA and pay the rest into the IVA.
Oh well, we will wait and see. Guess what will be will be
Loved Money, Hate Credit, Road to Recovery.... IVA started 3/3/14 -- IVA F&F accepted 18/5/17
I was allowed to keep my whole personal injury claim, not just pain and suffering.
My IP made sure she wrote it in proposal to exclude like bankrupcy but has since said I would have kept it anyway. So not all is lost
