www.iva.co.uk

Hello,

just a quick hypothetical query.

i am in an iva alone. Parents have suggested lending/ gifting my wife a decent sum to aid her financial situation, particularly as I am not in position to help.

i presume that is fine, as iva is in my name alone? Just very curious if its an option for her?

thanks in advance

If you are in the IVA alone and your disposable income isn't supported by her money then ... her money is her own.

Agree with foggy if your iva is solely in your name then any windfall of your wifes would not be counted

Cheers for that guys.

Was just really curious and could not find a relevant answer on google.

Is this a legitimate way to get round the windfall clause: ask any benefactors to gift to your partner instead of you?

Would there be any way for an IP to know or any legal imperative on you to disclose the verbal arrangement?

Would your partner's bank ever request source of funds (if for example above a certain amount) and link it to your family that way?

GottaGetThruThis wrote:

Is this a legitimate way to get round the windfall clause: ask any benefactors to gift to your partner instead of you?

Would there be any way for an IP to know or any legal imperative on you to disclose the verbal arrangement?

Would your partner's bank ever request source of funds (if for example above a certain amount) and link it to your family that way?

Some firms do work on household income, rather than just that of the debtor and would have put authorities in place to tie in the solvent partner's duty to disclose. If we are talking big money and the IP becomes aware he / she would be within their rights to ask for confirmation that the monies are, indeed, rightly due only to the solvent partner. Failure to assist could see the IVA failed.

There is a large element of trust in an IVA and the spirit is to allow debtors to pay back as much as possible, rather than try to avoid paying as much as possible. If you betray that trust you are likely to get a rough ride. Things do have a habit of coming out of the woodwork at the most inconvenient times!

GottaGetThruThis wrote:

Is this a legitimate way to get round the windfall clause: ask any benefactors to gift to your partner instead of you?

Would there be any way for an IP to know or any legal imperative on you to disclose the verbal arrangement?

Would your partner's bank ever request source of funds (if for example above a certain amount) and link it to your family that way?

Windfall clause open applies to the person in IVA I believe not others. id imagine worse thing to happen would be some form of alteration to the payment.

as i was told before by ip company, partners finances are their affair, not anyone else. Fact they receive funds from anyone is neither here nor there in respect of my insolvency Id say. eg my parents giving her money is private between them.

obviously this is entirely hypothetical, so just curious to the ifs and buts

John,

Obviously you haven't mentioned any specific amounts but there may be tax implications that all parties should be aware of if they did so.

Regards

Johng79 wrote:

as i was told before by ip company, partners finances are their affair, not anyone else. Fact they receive funds from anyone is neither here nor there in respect of my insolvency Id say. eg my parents giving her money is private between them.

obviously this is entirely hypothetical, so just curious to the ifs and buts

Hypothetically this isn't a problem, as long as you keep the IVA going and do not end up having to petition for bankruptcy. The Official Receiver in bankruptcy has far greater reach than an IP and would investigate the intention behind any suspected circumnavigation.

Ryan wrote:

John,

Obviously you haven't mentioned any specific amounts but there may be tax implications that all parties should be aware of if they did so.

Regards

cheers Ryan. just trying to find out from iva angle, if situation did crop up, what the specifics are.

obviously tax implications are another consideration. i know you can pretty much borrow anything, but can only receive a certain gift amount under inheritance tax conditions (whilst said donor is alive)

Indeed John and I believe there are different limits for immediate family, etc and then there are PETs, etc, etc!

Best of luck.

I'm sure I have already responded to this post but cannot see it, suggesting your wife's parents might help you finish your IVA early by gifting you sufficient for a full and final offer instead?

Complex situation with me and my "blood relatives". Full and final not really viable option imo as my credit record still wrecked for the 6 years either way.

Ryan wrote:

Indeed John and I believe there are different limits for immediate family, etc and then there are PETs, etc, etc!

Best of luck.

i think if it was a large figure it would probably be on a loan basis anyway. if it was say 20-30k gift i think inheritance tax scenario applies, as it would be given to a non spouse/civil partner.

All second guessing at this stage tbh