www.iva.co.uk

Hi there!

My parents went trough an IVA in Nov 2015. My dad is on incapacity (has been for quite a few years) due to several heart attacks and an auto immune disease.

My mum, nurse, tried to run the house pretty much on just her wage, and I've the years ended up with debt that she couldn't pay back. I helped them with the Iva process, and the advisers were very helpful. I believe the had approx £18,000 to pay back (original debt was a surplus of £70k, I believe), with monthly payments of approx £240.

This was pretty manageable, until my mum suffer a stroke in Jan 2016. She has been off work since then, with little chance of returning. I organised payment holiday from the Iva, all staff were again very helpful and supportive.

We contacted variations regarding making an offer (£12,000, my grandmother was able to offer). Went through all the income expenditure again, Offer is submitted, good chance of being accepted, will find out on 11th October.

i should mention I contacted my mums life insurance company when her stroke happened, to begin a claim for critical illness- it was deffered for a long time, until consultants filled out the appropriate paperwork. Heard nothing for months until today she checked her banking to see if she could afford her phone bill, there was £37,400 in her account!! No letters from vitality or anything, just there. She rang to confirm, it was indeed Critical illness payment.

She was delighted itnitally, and it broke my heart to point out the windfall clause.

what do I do?! The varitiain team has Andres sent the proposal to the creditors, and all bank statement related stuff has been submitted.

She is no longer on half pay, just SSP, with little chance of returning to work- can they really take it all off her?? I've had to help out with bills every month for the past 6 months, we can't keep going on like this. They have reduced mortgage mayments of £300 until end of October, which will go back up to £690 from them.

Please share any advice that could help her retain at least some of the money. I'm too scared to contact the IP and bring it to their attention, in case it all goes..

Many thanks in advance,
Anna

Hi Anna. Sorry to hear of your parent's troubles. The question of the compensation will rest with whoever they are with .. some IP's are a lot more sympathetic than others!

We have a few insolvency professionals who post regularly -- hopefully one or more of them will pick this up and give us their views.

This is a tricky case as potentially the critical illness could be a windfall. Your IP will likely take legal advice given the size of the sum but personally I would think another variation would be appropriate. Creditors are normally sympathetic to illness and they may be prepared to accept the original offer and exclude the critical illness.

Your mother may need to seek specialist advice from a lawyer as there may be terms in the policy that protect her.

I received £700 in a personal injury claim whilst in my IVA and IP said because it was a personal injury claim i could keep 100 percent of it. I know its slightly different but fingers crossed for you

I am so sorry to hear about your mum and hope she recovers soon.

Personally speaking, I would have thought that as this money is critical illness money that it would be to keep her as she cannot work.

Was the IP company aware of the policy when the IVA started?

I can recommend a specialist insolvency solicitor if your parents decide to go down that route, subject to the IPs stance.

Hey folks,

Thanks so much for taking the time to respond! Sorry for the delay in my reply, 8 was on holidays, but back to reality now..!

You feedback is making more hopeful that we aren't going to be left with nothing.

Michael People- the IP has been empathetic so far, toward the situation. We find out on 11th October if the creditors agreed to the slightly lower amount (about 70 odd percent of the initial agreement). Would you recommend getting specialist legal advice before speaking to the IP? Would it be best going in with so more knowledge on the subject?

Kallis3- in the income and expenditure form, we included the fact that life insurance was being paid, but am unsure if it went into any more detail than that.

Lisa Thomas- it would be greatly appreciated if you could provide any specialist insolvency solicitors- we are near Belfast, in Northern Ireland.

Again, many thanks for the support,

Anna

Hi Anna I don't know any specialists in your area but if you're not bothered about getting advice locally please DM me and I will pass on some details. Alternatively look for a specialist insolvency solicitor local to you.

As the variation meeting has already been called for tomorrow you might as well see what the outcome is first before doing anything.