please can you explain to me what happens if you receive inheritance whilst in an iva.... can you use the money to complete the iva if there is enough or is it taken on top of the debt..... thank you... also our equity has been excluded from our iva does this mean we could look to move whilst in the iva or would we not get another lender to look at us....
If you receive an interitance then this needs to be paid across to your IVA. If it is enough to pay off your creditors in full, plus fees then anything left after that will be yours.
If not, then I'm afraid the lot will have to paid across, the IVA will then continue until you either manage to pay back 100p in the pound or your IVA term finishes.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If the inheritance will pay back the total amount owed to the creditors before you started the IVA, then that is what will happen, and anything left over will be yours.
Otherwise you will pay the inheritance across and continue paying to the IVA until you have paid back the debts in total or the IVA term has completed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If you start an IVA, it is important to understand that the amount you pay back to your creditors will increase if your income increases or you have the good fortune to receive a cash windfall.
If you get a windfall generally speaking this will have to be paid into your IVA. You will still have to make all of your remaining monthly payments so the net result is that your creditors will be paid more. As Jan has said, the maximim you will ever pay is 100% of your origional debt plus any IP fees.
As such, your inheritance would only cause your IVA to finish early if it was enough to cover your total origional debt and the IP fees.
You may also have to pay statutory interest as well in the event that creditors end up getting fully repaid - although this will depend upon the terms of your specific IVA.
