Hoping for enlightenment as am totally befuddled with complexity of working out this problem!
I owe £38.5K in total to creditors. My IVA proposal (set up in 2012) is to repay £29.5K. I have paid in £23.5K over the past 2.3 years (which includes proceeds from a successful PPI claim) and have 2.7 years left in IVA. Monthly repayment is £491. An equity clause is included in IVA terms.
How much will it cost me to pay off the IVA this year if I obtain the means to do so via an inheritance?
Would I have to hand over my entire inheritance to IP and wait for them to work out a completion figure before sending me back the surplus or can I set aside or send them the sum required to settle and keep the remainder (if any)?
Would be extremely grateful for assistance as am finding it very difficult and stressful to work out the answer to this puzzle myself. Thanks in advance for any help.
You will owe the full original debt of £38.5k plus IP fees and possible statutory interest.
Your inheritance will be used to pay the balance and the left over once calculated will be yours to keep.
If the solicitor is dealing with distribution of assets as per the will they should ask the question of all recipients as to whether they are currently bankrupt or in an iva ...you need to say yes.
If like my situation...the solicitor then worked direct with my IP and gained a figure of how much was due to be paid to reach 100% of original debt. At the same time I had an agreement go through that statutory interest was not payable.
The solicitor then paid direct to my IP the outstanding amount before sending me the balance fir my own use.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Just a random idea, If the person has not yet passed which triggers the inheritance would it not be possible for them to re-word their last will and testament to leave the money to you in trust and one of the conditions of said trust is that you are not allowed access to the funds until e.g. Today plus 3 years ? The same as parents do when they leave estate to their kids but don't trust them to blow it all until they reach a certain age, so it is placed in trust and they can have it at age e.g. 25.
If it just so happened your IVA was completed once the Trust period ends then you would not have encountered a windfall during the term of the IVA ?
Also, depending on your relationship with your partner perhaps the estate could be left to them instead ?
Guess all depends on the wording of your agreement.
Will aid is a charity that helps draft wills for a minimal fee, it is who I used many years ago. http://www.willaid.org.uk
Last edited by longslog101 on Fri Mar 20, 2015 11:26 am, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
Thank you for taking the time to reply. Unfortunately the person has recently passed so your suggestion is a no go. I will take Lulu's advice and ask the lawyers to deal with the IP on my behalf.
