If i am in the process of drafting my IVA proposal and recieve a tax refund of say £1500, do i have to pay this to my creditors or does that only come into force when my IVA is accepted?
Cap
If you are in the process of proposing your IVA and you receive a tax refund, you will need to tell the IP you are working with. The money will form part of your current assets and you should be prepared to pay it into the IVA as part of the overall return to your creditors.
If you are in the process of proposing your IVA and you receive a tax refund, you will need to tell the IP you are working with. The money will form part of your current assets and you should be prepared to pay it into the IVA as part of the overall return to your creditors.
Hi thanks for the reply, isn't the usual agreement that 50% goes to creditors? i think i saw it somewhere, or is that with regards to pay rises?
Also, when your IVA proposal is being drawn up i gather most people stop making payments to their creditors, thus having a backup fund for when the iva starts, wouldn't this also be classed as an asset and must be brought to the attention of your IP?
The 10% then 50/50 split tends to appear in most recent IVA proposals regarding bonuses and overtime - but that's only valid when you're actually in an IVA, not proposing one. A windfall (which is what a tax rebate is classed as I believe) has to be handed over in full if it is over £500 - again this is when you are actually in an IVA and that the rule is specified in your proposal.
If your are in the proposal stage then I'd suggest discussing with your IP as they will most likely see the payment in your bank statements anyway, so there is little point not disclosing it.
It's potentially a grey area but I would imagine if you had intentions to spend that rebate money on, say, essential car or house maintenance then its unlikely you would be made to pay it into your IVA.
Any cash balances held should be disclosed within the Statement of Affairs to accompany the IVA. I generally work on the basis if the balance is less than £500, this is negligible and best left with my client as a contingency fund.
This is a very useful topic. I have just received some overtime and was hoping to use some of it to get the car serviced and taxed then save the rest in my new Co-op savings account as a contingency.
My car is 3 months over due a service and my new job has just tripled my mileage. I won't be getting a receipt for the service as I'm paying cash to reduce the costs. I'm also going to stock up on washing tabs and cat food as they are all on offer at the moment.
Will this count against me when setting up the proposal? Even though I was in a DMP and MBNA agreed the reduced payment they have still put a default on my credit history.
Thanks
Nick
1st call 3rd Nov 2010.
Creditors meeting 21st Feb 2011.
IVA approved 22nd Feb 2011.
Will all be over 21st Feb 2016.
we stopped payments and put the money we should have paid into the bank as a backup contingency, and just as well as we have had boiler repairs, car repairs, printer repairs and now tumble drier. Plus christmas means we haven't as much of the money left, but without it we would have been up the creek.
