Good IVA

[camiva]

Hello again,

Has anyone out there had a good five years while on a IVA with no problems. As some of you may remember I have just started my IVA and am still worried sick. I am worried that there may be some hidden costs that I don't know about. Worried that I will need a new car and many more. I would love to hear a good story. The site is fantastic by the way.

[MelanieGiles]

Hi Camiva

I can't really help you with an experience of being in an IVA - but I have supervised over 1,000 over the last few years, most of which have successfully completed on time.

Trust your insolvency practitioner, and let him'her know of any difficulties you encounter along the way. You know, none of us have a crystal ball when we enter into these agreements, and the creditors are very well aware of that. Things can happen along the way and you, the IP and your creditors just need to be flexible enough to deal with those isses as they arise.

My door is always open for my own clients, and I am happy to be of whatever assistance I can to others through this excellent site.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[camiva]

Melanie, thank you for your help. I will be calling my IP just ask some basic questions soon.

[jamesfalla]

Hi Camiva

As Melanie says, there are many thousands of people who have completed IVAs over the past few years very successfully. I have worked with many many people form whom this is the case. Remember, the IVA legislation is not new. It has been part of the law for 20 years since 1986.

The best advice is make sure you maintain your payments as agreed and if you think you are going to run into any problems, make sure you discuss them with your IP straight away. Like anything, the earlier a problem is discussed, the sooner it can be resolved.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[camiva]

Thanks again! What usually happens if someone inherits a house during a IVA. I have not seen anything about that in my terms and conditions?

[Oliver]

This depends on the terms and conditions of your IVA but is liklely to be considered as a windfull which would mean that you would likely have to provide your creditors with the value of any equity to the limit of the outstanding debt.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

Camiva

Read your IVA proposal and associated terms and conditions closely. There will be a "windfall clause" in there somewhere, which will capture this asset in the event it is received during the term of the IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

Am I right in thinking that if someone did inherit a house for example they would have to sell the house, pay the debts in full (I presume less money paid into their IVA?) and any money left over would be theirs?



Three down, fifty seven to go until freedom!

[iva_squirrel]

Hello,


Your IVA includes a 'windfall' clause. Any assets, including lottery wins, bonus payments, gifts or inheritance have to be declared to the Supervisor and paid into the IVA for the benefit of the creditors.

You would need to pay your debt in full plus the IP fees. Any money left over would be yours.


Kind regards,


Julia



For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[MelanieGiles]

Absolutely Skippy - although some IVA proposals provide for statutory interest to also be paid in the event that debts and costs are being paid in full. This is calculated at 8% per annum for each year since the commencement of the IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[DebtDummy]

My IVA draft has a windfall statement. Anything, I receive of monetary value either through a will or the lottery or finding a bag full of money whilst on my way home will be taken by my IP and applied towards my IVA. When all my creditors are paid off and he receives his fees in full, the remainder is mine.

Good luck!!

All I have left is my humour.

[nancyspong]

So is that right if someone inherits a house they are forced to sell it and give all the money to their IP. What about all this releasing equity business.

[Oliver]

If the house was worth more than the debt owed (including IP fees and potential statutory interest), and if you could get a secured loan on the house an equity release would be possible and you could keep the house.

If the house was worth less than the debt owed then you could be required to come up with a money equivalent of the whole value of the house which would be hard to do without selling it.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[nancyspong]

I don't understand any of this!

[Oliver]

If you inherit a house during an IVA this is considered a Windfall and you will be expected to put money from this towards your IVA. You will only ever be expected to pay 100% of the original money you owe, plus any IP costs incurred and potentially statutory interest on the money. Therefore if the house you inherited is worth more than this, you will not be required to pay any more than your original debt (plus IP fees and possible interest). Thus you will be in a position where you can either sell the home and pay your debt off and pocket the remaining money from the sale, or, take a mortgage out on the inherited property and pay your debt off keeping the property and servicing the mortgage yourself. If the house is worth less than the debt then you will be required to either sell the house and put this money towards your debt or raise the money equivalent (through mortgage or friends and family) to keep the house. The problem will be that you are unlikely to (i) find anyone to lend you 100% of the house or (ii) show where you will be able to pay any mortgage or loan from to do this.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp