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i have entered into an iva and remortgaged my house to pay creditors. my iva was accepted by all parties and it should be concluded by the end of may. today i received notification that i am to get a large rebate from hm customs (approx 5k. my ip insists that all of this some must now go through to him as this is a windfall . is this correct?

I think that this will be correct as the windfall clause is a part of most ,if not all, IVAs.The timing of your rebate could be interesting because if you receive it after your IVA is concluded then I,m not sure if this clause will still be relevent.
However if you are returning a full dividend then the maximum that could be added via a windfall would be the statutory interest.
Regards

Hi tb

Yes - this is a windfall and your creditors will benefit accordingly.

It will not take two months for H M Revenue & Customs to pay you the rebate, and with knowledge of this benefit your IP is unlikely to close the case until it is received. In any case, it is not the timing of receipt of monies, but the date you are made aware of the benefit, which is the trigger date.

I am a little suprised that this rebate comes as a suprise to you. Were draft accounts not made available to your IP at the time your proposal was presented which indicated any rebate due?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk