I am in an IVA for about £32k but am anticipating a compensation payment for hearing loss, should be about £4k. I'm getting conflicting advice of the outcome.
Some people have said that any payout is classed as a 'windfall' and the full amount .should be distributed amongst my creditors. Others have said that because the payout is for a personal injury and will be used cover ongoing medical costs/equipment to improve my hearing, I should be able to keep the full amount. Any advice?
It boils down to the view of your own IP. There are no set rules for compensation, however, in bankruptcy compensation for pain and suffering is allowed to be retained and IP's generally ( but not all) follow this precedent. If it is awarded for a specific purpose you could argue that that is what it is for.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Depending on your IPs stance you might want to get an insolvency solicitor to act for you regarding this - I can recommend someone if needed.
Also I think you mentioned you have medical expenses - these should be covered in your expenditure - perhaps your contribution calculation/I&E needed revisiting.
