www.iva.co.uk

I am currently nearly 2 years into an IVA and have just found out that I have inherited some money, which is not enough to pay off my IVA, I am worried that my IVA company will take all of the money. Can you advise me on what they can take off me please

This will be classed as a 'windfall' therefore all monies will need to be paid into your IVA.

Check with your IP but this is normally what would happen.

Unfortunately briggadeen is right - this money will have to paid across to your IVA. You will have to continue to pay the IVA but your inheritance may mean that you can finish early if you manage to pay across £100p in the pound plus fees before the end of the period.

The problem is I get Tax Credits, these payments will stop once they find out that I have got money. These Tax Credits are accounted for in my IVA. I cannot afford to loose my tax credits and pay my IVA

Do talk with your IP Cathy, it's vital you explain it all and hopefully all can be solved. Windfalls do need paying across and not sure how Tax Credits look at this, but your IP will be best placed to give you advice. x

Tax credits are not interested in your receipt of inheritance. They are based on your income so if you receive interest on savings of more than £300 per year then that is what you need to declare to them. Hope this helps.

Hi - NEP is great with this stuff!! You may be allowed to keep the first £500 of a windfall so check your proposal. x

There is no way around this I am afraid - the money is a windfall and will need to be declared and paid over to your IP unfortunately - but it may leave you with a much shortened timescale depending on the maths.