Does the part inheritance of a house count as an asset towards an IVA ?

[Timothy.w]

Evening; if your due an inheritance of a house which will be split 3 ways between yourself and 2 other family members accoring to the will does this count as an asset towards an iva or will it be used to reduce the iva payments?

[relieved33]

It will be classed as a windfall and increase the return to your creditors.

[Jules79]

Hi & welcome to the forum,

I'm no expert but as I understand it, it is classed as a windfall so therefore fully payable to your IVA.

I'm sure one of the others will clarify this in more detail shortly.

[Foggy]

It is a windfall and will be paid into the IVA. Your contractual payments will not stop or reduce until such time as the term completes or the money paid in repays the full debts plus fees and possible statutory interest.

[Timothy.w]

Okay. The problem is that my IVA finishes June 2015 but my sisters are undecided if they want to sell the house or one of them might live in it until it's worth more in 18 to 24 months time. How does that affect my situation? One of my sisters is the executor of the will so the decisions are mainly down to her.

[Foggy]

It will really be down to your IP. He / she will need to be informed and will, ultimately, have to put the situation to the creditors if funds are not forthcoming.

Worst case scenario is that they force a sale.

[Timothy.w]

Cheers, but how can they force a sale if I only get 1/3 of the house?

[Foggy]

I am not qualified to go into the ins and outs and would only be expressing, possibly incorrect thoughts. I would suggest you have a frank chat with your IP and, hopefully they will be able to find a mutually beneficial solution.

[Adam Davies]

Hi

You need to inform your IP because worse case scenario is that your IVA fails for non disclosure and bankruptcy follows

Regards

[Timothy.w]

I will when I find out if I'm due anything