www.iva.co.uk

hi, i know that if i start to earn more money i have to pay more but what is the situation with lump sums - i stand to recieve a little inheritence money sometime soon - will i have to hand that over and pay the original amount of debt in full?
Thanks, Mike

Hi Mike and welcome to the forum.

If you receive an inheritance this will be classed as a windfall and need to be paid into your IVA. You are liable for the full debt until your IVA finishes.

Part of the IVA deal is that you give creditors a fair return, but if you ever get to a point where, for whatever reason, the debt can be paid off in full then your IVA would conclude at that point.

Regards.

Hi, this is where I get confused again! Do you mean the whole total debt at the start of the IVA or less what payments you have already made? as to say the "total debt" is slightly confusing especially to me sorry!

If it covered the full ammount from before the IVA then your IVA would conclude.
If it doesnt then it will have to be paid across to your IVA and monthly payments will continue meaning a higher return for your creditors.

Sorry Lisa Im still confused, OK given this scenario, owe £100,000 on start of IVA, paid off £60,000- windfall say £100,000, are you saying that the whole of this needs to be paid across as well as what has already been paid into the debt owed?? or just £40,000 to complete out of the £100,000 windfall? Thanks!

You will never have to pay back more than you owed in total to your creditors, plus fees.

If your windfall will pay off the total debt to your creditors, great. If there is anything left over after that, it is yours to do with as you wish.

You will always owe the full amount to your creditors until the completion of your IVA.

Great, that's well explained thanks Kallis!

so how would you know how much you have paid in kallis..does the iva company have to tell you? or would you have to give them it all

You will always owe the full amount to your creditors until the IVA is finished. Your IP will know what your original debts were.

I know exactly how much I have paid in, and you should receive this every year via your annual report.

so will sunflower get to keep any remaining monies then ?and does it include the money paid in or is it extra

Hi
Sunflower will keep any money left after the total original debt is paid, plus IP fees LESS the amount already paid in from monthly payments
Regards