Personal Injury Compensation, count as Windfall?

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Hi,

Does Personal Injury Compensation count as a Windfall?

Thankyou

[Adam Davies]

Hi
Normally in bankruptcy this is excluded and really should be the same in an IVA.However you will need to look at your terms and conditions to determine this.Have a word with your IP as they will be able to give you a difinitive answer.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[spon]

Hi,

Thanks for the reply. If i did ask my IP about Personal Injury Compensation, would they not just take this Compensation from me once i have received it?

[Adam Davies]

Hi
well if it forms part of your IVA agreement it will have to be paid.If not then it will be yours.
You need to ask the question,but be sure to speak with your actual IP.
regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[spon]

Thanks.

If the Compensation is enough to clear the outstanding balance, can this be used as Full and Final Payment?

[Adam Davies]

Hi
If it does not form part of your IVA and it is deemed yours then you can use it and offer a full and final.If it is seen as a windfall then all of it can be paid into your IVA upto the value of your original debts plus IP fees and interest,less payments made.
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

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Does this mean if it is classed as a windfall, then the payment if enough the clear the IVA it can be?

Or my IP takes this and i carry on paying for the remainder of the IVA?

[Adam Davies]

Hi
If it is enough to clear all your ORIGINAL debts and fees then your IVA will cease.
If the windfall is not suficient to clear your original debt then they will take all this and you will still make your monthly payments
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

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Thanks for the answer.

When you say ORIGINAL debt, does this mean what I owed before the IVA or what i owe within the IVA Debt?

[Adam Davies]

Hi
The amount that you listed in your IVA proposal,so your original debts before your IVA.
You still owe the whole of this debt,less dividends that have been paid by your IP,until your IVA is concluded.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

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Hi all again.

I have been made an offer for my compensation of around 24k, final figure not finalised yet as this involves open labour market, and future surgery costs as well. And really need to know if this is classed as a Windfall???
( the stress of an IVA ;( )

I really want to use some of this to payoff my IVA in full and be debt free.

Is it likely that my IVA will accepted this:

Seeing as before IVA I owed around 40k, have been in my IVA for around 19mths and now owe around the figure of 17k.would this mean they will take into account what i owed before i setup an IVA???

Thanks
Pic

[Adam Davies]

Hi Pic
Only your IP can answer this,it all dependes if they class it as a windfall but a it is for future surgery costs then they should not.
You could then use it to offer a full and final payment to conclude your IVA.
Have a chat with your IP,but as I've said before make sure that it is your IP that you speak to
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

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Thanks for the reply, i will ask them, but have a horrible feeling they will want the money..

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Again thanks for this.

But as stated this compensation includes, payment for being put on the open labour market due to injury and for future surgery's.

Is there no way i can offer this compensation to get myself out of the IVA? Is there anywhere i can go for advice on this? instead of asking my IP.

I've checked my Terms and conditions and should i receive any windfalls, Inheritance or assets during the course of my iva, they are to be made availiable upto the value of total debts plus statutory interest. ( does not mention Compensation )

Sorry to keep asking questions, but as sure people on here know how stressful and messy it is being in an IVA.

Thanks

[MelanieGiles]

Find a lawyer who has detailed knowledge of personal insolvency, who can read through your IVA documents and advise you accordingly. I am afraid that I feel that this will be grabbed as a windfall, but if this ever was taken to Court (on the basis that you refused to pay it over) then the judge might just be swayed by the bankruptcy provisions.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp