Hi - this is my first post on here, but been in an IVA for 2 years now, just never needed advice till now.
Now i know everyone will say I must inform my IP, which to be honest I probably will because otherwise I will just worry, but .... If I receive a sum of money for injury compensation (work injury) how will my IP find out I have received this money? Are they automatically informed somehow of my claim?
Hi Val. They won't be automatically informed. However, they might, out of the blue, ask for bank statements covering the period the money gets paid in, or discover the payment by chance another way. Is it really worth the worry that the IVA could fail in the future over this?
In any event, many IP's (though not all) take the view that compensation for pain and suffering should be treated as it is in bankruptcy and that you be allowed to keep it. Compensation for loss of earnings, however, is payable into the IVA, in full.
As I know from a previous life -- things have a way of being found out ! (I might add, I was the finder, not the hider!). It is amazing what you can learn "accidentally" !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am currently waiting for a settlement for injuries from a RTA which are excluded from the windfall clause, I fully expected to have to pay them to the IVA so was very pleasantly surprised I wouldn't have to. Because they are solely for injuries and not for any loss of income (which creditors would probably have claimed) I am able to keep them, I just wish things would hurry up.
I know I am a good person, I just need to start believing it
In my experience, I have discovered a few hidden "windfalls" from anonymous whistleblowers. In one case a £115,000 inheritance had tried to be hidden from me, but a member of the debtor's family tipped me the wink. With information like this, it is relatively easy to run traces which eventually lead to the pot of gold. Needless to say, I completely trust the vast majority of my client base to be honest in any case!
Reported in our local newspaper this week The Sentinel a bankrupt hid a £75000 windfall, he received shortly after being made bankrupt arising from an accident and at work. For the offence he was arrested and at Stafford Crown Court this week was sentenced to eight months imprisonment which was suspended for two years. The Judge told him he had stolen money which belonged to his creditors, he blew £25000 on gifts and luxury holidays £40000 plus was recovered I suppose its the same as in an IVA the money belongs to the creditors.
I once dealt with an IVA case for husband and wife (interlocking) in the days when 25p in the £ hurdle rates were rife. In this knowledge the wife failed to nofify me, and her husband, of additional debts she had of £14k, which she tried to pay throughout the IVA. About 2 years in, it all came crashing around her, and she confessed first to hubby and then to me. I had no choice but to fail her IVA, but we separated his out and she went bankrupt. The OR decided to pursue her for the false declaraton in the IVA, and she eventually ended up with a criminal record and 400 hours community service. Is it worth it?
Definitely not worth it..entering into an IVA we are already expecting creditors to wipe out an amount of debt we had with them.
I always look at it as - if I hadn't been in the IVA and received an inheritance I would have been grateful to pay that amount off our debts so no difference being in the IVA in my opinion.
I phoned and spoke to my IP(advisor) today and unfortunately I will not be able to keep any of the compensation. I found this hard to believe as none of the money is for loss of earning (I was on full sick pay after the accident), it was for injury compensation only.
In my view if its for personal suffering then it shouldn't be paid to creditors, but stepchange seem to take a different view.
I agree that isunfair, especially as it is not always the case. Two of my creditirs wanted mine to paid into the IVA but my IP overuled them but I have to be honest and say I was preparing myself for such an outcome- I can't deny I owed them a lot of money and had I not entered the IVA I would have used some of it to make a small dent in my debt. Hopefully this is not the end for you and you will get a fairer outcome. Xx
Last edited by Robbieboy on Sat Apr 06, 2013 7:39 am, edited 1 time in total.
I know I am a good person, I just need to start believing it
You mentioned you spoke to your advisor I would get this straight from the horses mouth first, Injury Compensation ( Compensation to damage of the person)is vested in the person not the property of the person that is why it is not claimable in bankruptcy.
Stepchange only has one IP -- I doubt anybody ever gets to speak direct. You have made the query and got a response you are unhappy with. Escalate to formal complaints, then, if required on to the regulators.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Jackie Westerman at Stepchange is more than happy to speak to her clients if they need to speak with her, and I would dedinately recommend a chat if you are unhappy with her staff's decision.
