As said, you can fail the IVA, but this could increase your debt as creditors will add back lost interest and late payment charges, they would also be able to take any enforcement action they deemed apropriate. Assuming they all play ball you could then enter a DMP -- although this is not legally binding and they do not have to comply. A little further down the line they may, or may not, be open to a settlement offer. I am afraid it all depends upon the roll of the dice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I'm sorry about your family member. Looks like you are stuck between a rock and a hard place and only you can make a decision as to what you are going to do.
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
I completely understand but how would they feel in thinking they were leaving you such a lovely gift only to find that it went towards paying off your debts in your IVA.
Is there another family member who you could talk to instead perhaps?
This is very sensitive and I can understand your dilemma. However, if the will was changed and your share was allocated to a sibling for example they could use some to offer as a full and final settlement. You would be out of your IVA and the bequest would have left you debt free for the first time in years.
Lisa's idea is a good one so try and speak to another family member and at least some good will come out of this rather than your share being lost. This person wants you to have the money and what a legacy it would be if they left you debt free.
Sorry final question, if I got the person to change his will so my inheritance would not go to bankruptcy, would it be held till I was solvent again in 5 years, what happens to the money?
Adam_7985 wrote:Sorry final question, if I got the person to change his will so my inheritance would not go to bankruptcy, would it be held till I was solvent again in 5 years, what happens to the money?
You would need to get legal advice. Some insolvency clauses will act to simply disinherit an insolvent beneficiary and the monies would be shared with the other beneficiaries, or as detailed in the will itself. Or the clause could seek to hold the money in trust until the beneficiary is once again solvent. Now ... such a clause can be over-ridden in bankruptcy with the official receiver stepping into the shoes of the beneficiary and getting the money .... whether the IP has the same reach I do not know. Do you have a sibling the money could be left to instead of you? If so, he or she could then give you the money after the IVA has concluded ( or use some of it as a full and final offer to end the IVA early ). Obviously this will require a degree of trust as such an arrangement cannot be agreed in law or enforced.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If the will is changed it will go to someone else - as Michael says you could have an agreement with them behind the scenes that they will gift the money to your IVA as part of a full and final settlement but you would need to be able to trust the new beneficiary as legally I suspect the money will be theirs under the will.
