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Posted: Wed Mar 19, 2008 5:09 pm
by e4sby
Hi,
I have been in my IVA for about a year now and have had an injury insurance claim going on for the same amount of time. Problem is that i'm going to receive a cheque for around £4-5k for loss of earnings, expenses and compensation and was wondering how it would effect my IVA?
Will i lose some for my creditors as i was going to use it to pay a debt i have to my parents and my blasted overdraft!
Any advice would be great
Cheers
Chris
Posted: Wed Mar 19, 2008 5:29 pm
by Lisa2009
Usually it would be classed as a windfall and would have to be paid to your creditors.
Paying an overdraft which you perhaps shouldnt have and paying your parents, i would imagine as prefering one creditor over the others.
If i were you i would be completely upfront with your IP and explain the situation and see what he/she suggests.
Posted: Wed Mar 19, 2008 5:31 pm
by chris.g
I think it will depend on the terms of your IVA. You will probably need to have a look at them and will, without a doubt, have to inform your IP. Sure one of the experts will be along soon to let you know for definate,
ps, welcome to the forum
Posted: Wed Mar 19, 2008 5:41 pm
by luluj
pay into a separate account and keep quiet! Not ......... be upfront and pay it to your creditors - after all you did spend it in good faith! Parents are normally ok to wait - I know mine are even though they are not made of money!
Why the overdraft whilst in an IVA - I thought that was a big NO NO!
Posted: Wed Mar 19, 2008 7:01 pm
by e4sby
Looks like i will have to be upfront with my creditors, would be gutted if they took the whole lot off me!
Would like the opinion of an expert on the matter and a rough estimate on how much i'd have to pay out?
Posted: Wed Mar 19, 2008 8:40 pm
by Adam Davies
Hi
You will have to declare this in full to your IP.
WAs your Ip aware of your overdraft or has this happened since your IVA ?
Your IP may allow you to pay off the overdraft before handing over the balance.
Interestingly under bankruptcy your payout would be yours to keep,strange isn't it ?
Regards
Posted: Wed Mar 19, 2008 9:17 pm
by MelanieGiles
Why do you have a debt to your parents or an overdraft whilst you are in an IVA? And the payment you are due to receive will be classed as a windfall unless there is something in your IVA which would exclude it.