www.iva.co.uk

I was self-employed for a year before entering into an IVA. I have now been informed by my accountant that I am entitled to a decent size rebate as the company I ran filed a loss for that year. The rebate is being made against taxable wages in a different year whilst I was employed.

I have been informed that this is classed as a windfall and must be paid in whole to my creditors, they won't even tell me how much it is!

I believe that the rebate was due before I started the IVA but Inland Revenue have caused delays.

My question is this, shoukld I have to pay all of the money into the IVA despite the loss occuring before the commencement date? Also, the rebate is money that I paid whilst I was employed before the IVA.

Seems very unfair, I fully understand the whole windfall thing but this should have been signed and sealed before the IVa was commenced.

Appreciate any advice.

Thank you in advance,
Justin

Hi justin

Really think an expert needs to answer this, hang around and I am sure one will answer your post soon.

Welcome to the forum,
Emma x

Hi
I think that you have to accept that this will fall into your IVA.
Your creditors,I guess,will be writing off a large part of your debt after year five and it is only right that this money goes towards reducing this write off
Regards

I have to agree with Andy. I think it only fair to expect that your creditors would probably want you to pay it over. After all, they have agreed to write off a chunk of your debt.

Presumably if you had received the money prior to the IVA being accepted you would have paid it over to creditors in any case?

It would have been useful as I could have got rid of a couple of creditors completely as they were willing to reduce debt dramatically for full payment.

Hi
Unfortunately all your creditors are bound by your IVA and you would not be allowed to favour one creditor over another,putting your money into your IVA will mean that creditors receive it pro rata to the amount owed
Regards

I have to agree it's a windfall - something that was not foreseen at the time of the proposal. If you had known about it at the time you would have had to include it anyway.

Check your proposal though - if you are lucky it may provide for sums over £500 only to be paid into the IVA so you might be able to keep at least a bit of it.

Ian