Posted: Fri May 14, 2010 7:10 pm
Hello all.
We have been in an IVA with Payplan since 1st Feb this year. Prior to that we had been in a DMP with them, for quite a few months. We applied for the IVA and at the point of the first phone interview I asked if we should stop paying into the DMP. I was told that I should carry on with payments just in case the IVA application failed. There was obviously a gap of a few weeks whilst our application was processed and ultimately accepted, during which time we continued paying into the DMP. I did wonder at the time, what happens to all that money that was still being paid into the DMP during the IVA application process (it actually took a couple of months), as retrospectively it wasn't necessary to pay it from a legal point of view, as DMPs aren't legally binding.
Well, today, I came home from work and found that I have been sent a cheque from Payplan for over £600-00 !! This is apparently a refund of undistributed funds.(presumably the money I paid in during the IVA application process period, as the amount would make sense).
My question is, is this money classed as a windfall (and therefore subject to the rules regarding theses in an IVA), or is it to be viewed as all my money as technically I could have spent it before the IVA was confirmed. After all it was only really being held by Payplan in lieu of non-IVA acceptance, as a kind of insurance.
However, the IVA was accepted and I have been sent some money back.
Half of me says "YIPEE" and the other, more cautious half says "hold on, don't spend it just in case".
I appreciate that some of you will just reply that I should speak to my IP about it, and I will do on Monday. However, it's the weekend and I just wondered if, in the meantime, somebody could advise me as to how I should be thinking right now, is it my money, or do I have to give it up to the IVA? Do I get excited (there are so many things we could spend it on for the house).......or not??
Much appreciated,
Gabba
We have been in an IVA with Payplan since 1st Feb this year. Prior to that we had been in a DMP with them, for quite a few months. We applied for the IVA and at the point of the first phone interview I asked if we should stop paying into the DMP. I was told that I should carry on with payments just in case the IVA application failed. There was obviously a gap of a few weeks whilst our application was processed and ultimately accepted, during which time we continued paying into the DMP. I did wonder at the time, what happens to all that money that was still being paid into the DMP during the IVA application process (it actually took a couple of months), as retrospectively it wasn't necessary to pay it from a legal point of view, as DMPs aren't legally binding.
Well, today, I came home from work and found that I have been sent a cheque from Payplan for over £600-00 !! This is apparently a refund of undistributed funds.(presumably the money I paid in during the IVA application process period, as the amount would make sense).
My question is, is this money classed as a windfall (and therefore subject to the rules regarding theses in an IVA), or is it to be viewed as all my money as technically I could have spent it before the IVA was confirmed. After all it was only really being held by Payplan in lieu of non-IVA acceptance, as a kind of insurance.
However, the IVA was accepted and I have been sent some money back.
Half of me says "YIPEE" and the other, more cautious half says "hold on, don't spend it just in case".
I appreciate that some of you will just reply that I should speak to my IP about it, and I will do on Monday. However, it's the weekend and I just wondered if, in the meantime, somebody could advise me as to how I should be thinking right now, is it my money, or do I have to give it up to the IVA? Do I get excited (there are so many things we could spend it on for the house).......or not??
Much appreciated,
Gabba