After my dad passed away in November, GT agreed to lower our monthly payments to accommodate my contribution towards the cost of the funeral.
On the Sunday before Christmas my husband fell whilst carrying our daughter at our local train station. Today we have found out that it is a more serious injury which will require surgery and a lengthy recovery. As we both work for the NHS, both of our incomes will be reduced due to the loss of unsocial hours enhancements.
My question is how much can payments be reduced by and still keep IVA running?
Also if he did receive any compensation, would this be classed as a windfall?
Hi. All depends upon the actual way the relevant clauses are written in your arrangements.
Generally a reduction of 15% is allowable, at the IP's discretion, without going back to the creditors for permission. Anything more than that has to be referred for agreement.
There are other things they can do to assist and it is best to have a chat with them as soon as possible.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Compensation for pain and suffering is usually excluded from insolvency proceedings while loss of earnings is captured as a windfall. This seems fair as it would clear any shortfall incurred as a result of the reduced contributions or payment break.
Thanks Michael. If we were able to offer a F&F with help from a friend and complete IVA before any compensation is received, would we have to pay anything to our creditors, as we were in IVA at the time of the injury?
I would not think so if the variation was written properly. The claim would be disclosed and excluded and any money received subsequently could be used to repay the friend. A full and final usually means just that and anything else is excluded.
If we propose a full and final settlement we will include any financial irregularity reclaims such as PPI or misselling but anything else is excluded.
