Modification

[pms9999]

I've just had a call with Natasha at Payplan and I ran through some payments and life changing incidents regarding inheriting money, gifts and commissions etc and how they would work.

They're saying their windfall clause which is;

Any windfall, in excess of £500 recieved by the debtor must be immediately paid over to the Supervisor for the benefit of all creditors.

That this means if I inherit 1 million pounds, the creditors get to keep it all and I would get £500 and thats unfortunately how it works.

But if for instance my wife inherited £50,000, I could make a full and final settlement offer of £25,000 as that would be a gift and not a windfall..........

They also said if I get a £10,000 commission cheque this would be classed as non regular income and I would get £500.00 only but if I got paid £1000.00 month commission on a regular monthly basis then I Would just have a review annually.....

I'm a bit confused now but should I be getting any possible inheritance put in my childrens or wifes name so they can then give me a gift and we keep the rest or lose it all to a creditor???

Surely a creditor hasn't got carte blanch to earn any more than all outstanding debts + interest???

Should I check I'm not related to Richard Branson?
Have Payplan made a mistake?
Am I going nuts?

All to be concluded as soon as possible:-)

[lily]

The most you would pay back on a windfall clause is the full debt plus 8% (I think) stat interest. If you got 1 million I am sure you would have a bit left over after satisfying creditors and fees.

Good luck.

[Sensible77]

I think that you may have misunderstood this. As I understand it, the maximum you will ever pay into your IVA is the full outstanding debt plus interest at 8% plus the IP's fees. So if your total IVA was £100,000 and you inherited 1 million pounds you would be left with £900,000.

[pms9999]

Nope, I definately didn't mis understand. Natasha had to clarify for me 3x as I was a bit gobsmacked when she said it.

In her eyes if I get a windfall on above clause then they get everything and I get £500 even if it's millions.

I can't help but think thats wrong, thats why I posted.

[lily]

That is wrong, noone ever pays back more than they owe including interest and fees.

Best to wait for an experts view though.

[pms9999]

Well I think it's wrong but the clause is very ambigious.

I have another clause about marginal sums, gifts etc which does say about paying off the IVA + Int etc.

[emma_t]

I also was under the impression that the most you would ever pay back would be original debt + interest and fees..
sounds a bit strange if you, for instance, won a lot of money on the lottery or something to pay it all over less £500.

[Sensible77]

Hi, pms9999. I've had my IVA with Payplan since June 2007, and, whilst I appreciate that proposals do vary, my proposal states: "Assets, gifts or material sums of money (excluding normal regular income): If I receive during the period of the
arrangement any material sums of money (over £500) - or asset that may be realised to pay my creditors, I will inform the supervisor within ten days of receipt. The supervisor will then determine the timescale for payment and may call a meeting of creditors to extend the arrangement if necessary. The limit on funds to be paid into the arrangement will be the payment of all costs of the arrangement together with the full repayment of creditor
claims plus statutory interest.”

I think that the last line explains the payment question, though yours may well be different.

[Adam Davies]

Hi
As above the maximum that you can pay IS the original debt,plus IP fees and statutory interest.
Regards

[pms9999]

Hi Sensible77,

Mine is exactly the same but I have this mod:

Any windfall, in excess of £500 recieved by the debtor must be immediately paid over to the Supervisor for the benefit of all creditors.

[aguise]

I have that too pmss it is fairly standard in a lot of proposals.

Ang

[pms9999]

Hi Ang,

But my case officer has intepreted that to mean any windfall no matter how much goes to the creditors?

Have you questioned this with them?

[Sensible77]

Hi, pms9999. Sorry for saying earlier that you misunderstood, what I should have said is that you have been given incorrect information. I'm not usually a betting man, but I'd be prepared to bet my house that what you have been told is wrong!

[pms9999]

Hi Sensible,

I've had an email response now;

1) You are correct in your thinking that if you were to receive a large windfall, the maximum you would have to pay is our costs, your creditors full amount of debt plus statutory interest.

2) Your equity proposals were not overridden by an equity modification, so the amount you owe from equity in 2012 is as proposed i.e £7,493.79. When the time comes for this payment to be made, frankly, neither your creditors or us are too concerned whether it comes from a re mortgage or a partner/ friend pays it for you.
On receipt of £238.00 x 60 payments and £7,493.79 your IVA will be satisfied and you will be free of debt.

[Adam Davies]

Hi
Just shows you the value of knowledge
I think Payplan clearly have some issues with staff training and knowledge
Regards