www.iva.co.uk

I have recently completed the 2nd year of my IVA and was under the impression, under my windfall clause, that anything under £500 i could keep, but anything above that i had to pay over. I have therefore sent them a cheque for the excess of the £500, but my IP has now said that i can keep £499.99 all to myself, but the minute it goes over £500 i lose it all!! Is that true? It seem desperately unfair.

Also, i am considering early settlement and my IP said the majority of my vote is held with Max Recovery. Do you know if they have a good track record with acceptance of full and final settlements??

Many thanks

My interpretation of that particular modification would be that if , say, you won £499.99 it's all yours to keep. But win £500.01 and it all has to be handed over.

What is the exact wording of the clause or modification relating to windfalls / Inheritances?

Max Recovery are like any other creditor when it comes to proposing early settlement. They'll take a view and if they think that the offer put forward is reasonable they may accept. If it suits to continue to the natural end of the arrangement they will reject. There is no cut and dry answer to how they vote.

mine is anything over 500 they get so if you got 600 they would recieve 100 read your report what does it say?i would think they have bought the debts for a lot less from your original creditors even as low as 10p in pound if i was offering it would be less[:I]

As Cybus says, post the exact wording and we can advise. I do not share the view that you could not keep the first £500, but it will be down to the wording at the end of the day.

Max Recovery are extremely commercial, and probably accept over 90% of all variations which enable them to receive an earlier repayment.

I have checked the wording and it sais, "Any windfall in excess of £500, received by the debtor must be immediately paid over to the Supervisor for the benefit of creditors".

What is annoying about it, is that when i rang my IP and asked him regarding this when i was completing my review he said that i can keep anything upto £500 and pay across the excess. Then when i do that, i get a phone call saying i have to pay over everything! I'm starting to think that they feel they can dictate and change the rules as and when they wish to suit them.

Melanie, thanks for your comments on Max Recovery, that is the impression i got about them. I heard they are a massive American outfit and have a better history of accepting settlement than other organisations.

I am considering offering a settlement of around 6k to 7k. My original debt is around £38k and i am paying back 25p in the £1 which equates to £260 per month and i have just completed my 2nd year. In total so far i have paid about £6600. Do you think that would be reasonable?

The other issue is that my partner thinks i have been mis-sold the iva (and is extremely annoyed about his sudden windfall change in rules) and has said that we should inform them that i am now considering bankruptcy as the alternative and offer them 2k. I don't understand the formalities of this, can you help?

I'm sorry i have asked so many questions, i just feel a bit confused by it all! Your comments have been really helpful!

Thank you x

Why would you think that you have been mis-sold an IVA. This seems to be cropping up an awful lot at the moment

I didn't, until they started changing their story about my windfall clause. I have just started doing alot of professional exams and i will now be eligible for performance related bonuses. I am more than happy to abide by the terms of the contract as i understood them and pay over the £500 to them, but if they are going to take everything from me then i will re-think my situation. All i have ever done is been honest and i fully explained at the beginning of the process that i would be earning bonuses above that level. At no point did they tell me i'd lose it all. I'm just a bit upset by it all.

Hi Rebecca, I think you need to go through your Terms and conditions document that you would of signed and received when you started your IVA and have a look at the wording. Only way to be sure

Thanks rayb. I think i will do that tonight when i get home. I just really want out of it now, hopefully by settlement. x

I wish you all the luck with the settlement x Hopefully at some point soon I will be in a position to offer Full and final

Fingers crossed for you too! Keep me posted on how things are going for you. x

Will do x

Hi all
Regarding windfalls, My propsal only states that I am to go to condtion 27 of the standard terms and condtions regarding windfall provison. In the t&C's it just mentions After aquired assets. What does this mean?? With regards to bouns or windfalls??

I have checked the wording and it sais, "Any windfall in excess of £500, received by the debtor must be immediately paid over to the Supervisor for the benefit of creditors".

this can be read and taken 2 ways all or excess above the £500 have you spoken to your ip or someone in the office you need to speak to your ip mine is worded exactly the same but i get to keep the first £500 and i have done with a bonus i recieved last year and was told to do this from my ip.just to add my bonus was £800 after tax so i sent £300 to the ip

Hi indebtforever,

Yes when i first spoke to my IP about it he said i could keep the £500 and then pay over the excess. Now he has changed his tune and said i have to pay everything over. I don't really know what to do other than dispute it again.