www.iva.co.uk

Hi,

Really hoping you will be able to help. Just started an IVA, family member is giving me a large sum of money as he came into some money recently. I want to invest this in an ISA for the future, will this be a problem? Can my creditors get hold of this money?

Thanks
Scott

I would image if they did give you the money, it would count as a windfall and all fall into the IVA.

I agree with Poorbuthappy that the money would most likely be looked at as a windfall.

Hey scott, welcome to the forum. As the others have said, you won't be able to keep this money unless a family member saves it for you. How much are your original debts, how much do you pay into your IVA per month? How long has it been running? Would this money be enough to offer a full and final settlement to your creditors?

Hi
I don't think that this is a windfall,it is a gift and your creditors have no automatic right to it.
Regards

Sorry, duff info by me! [:I]

Hi
Well not necessarily Viki,it will depend on how the IP interprets it,you're right it could be used for a full and final if it was indeed a gift and also enough to satisfy creditors.
Will be intereting to see Mel or Davids reply on this
Regards

I take the view that it was money that has only been given to you by way of a gift, and therefore does not fall under the windfall clause of the IVA. Otherwise any offers of third party funding for full and final settlements would be caught by the same provisions.

You do need to be careful however, that you do not default on your IVA and risk entering into bankrutpcy proceedings, as this would definately be an asset which would vest in the Trustee.

Have you thought about using the money to offer a full and final settlement, and then using your saved IVA contributions to invest for the future?

This is not "after acquired property" as defined in the IVA Protocol Compliant IVA which has been in use since 1st February 2008. Melanie suggestion is a good one and you might consider offering a full and final settlement from such gifts. The saving of what you are contributing each month would probably exceed any income/interest you receive on the investment of the gift. If you invest the gift (other than in an ISA) then that yearly income should be disclosed to your Supervisor.

Hi all,

Thanks for your help and welcoming.

The gift is not enough to cover the full IVA. Its about 7/8% of the overall debt. I was just going to put it in an ISA and leave it until my IVA has finished and i wish to buy a house.

Do you think this would be ok or not? Shall i talk to my creditors?

Thanks very much for your help.

Scott

Definitely talk to your Superrvisor

If you are going to be able to offer a substantial repayment, I would have thought that creditors would bite your hand off to be honest. But then having a nest egg to buy a property with at the end is also good financial planning as you have the security of the IVA to deal with your creditors.