www.iva.co.uk

Hello, Just wondering if someone can help. I am currently in the 1st year of my IVA. This week I received a cheque for over £1000 which is for an error my old mortgage company made by not refunding a early repayment charge around 9 years ago. The sum is made up of the early repayment charge (half) and the interest at 8% (half).

I contacted my IP to advise them of this. I asked if I could keep the majority of this and a gesture into the IVA. I have a HP Car Agreement which ends in 18 month and wanted to use this to pay off some of the balloon payment, then refinance the remainder with the view of reducing the monthly payments with any difference in monthly payments going into the IVA. If I re-finance the car (same company) without paying the money \i have received, no doubt the monthly payments will be same or more - so the creditor would lose out here. In the proposal set out I thought both parties would be benefiting.

The IP has responded and said that I need to hand the whole amount over to them. Is there anything I can do?

Many thanks.

Hi and welcome,

Unfortunately this will be classed as an asset and, as such, will be handed over to your IVA company to go to all creditors.

The £1000 will need to go into the iva pot unfortunately providing a higher return to creditors.

Hi

As others have already stated this money will have to be paid into your IVA

Regards

Have you discussed the car balloon payment with your ip at all? Do you know for sure you can refinance what's left?

Paul

No - in line with the terms of your IVA this is an assets of your IVA estate and must be paid over, sorry!

As said above the payment will have to be paid to the IVA estate.
As logical as your argument appears regarding future payments being improved if you could use the money towards a balloon payment, you will be asking creditors and IP to gamble on nothing else changing in the meantime to scupper that plan !