Inheritance

[snoogle]

What happens if I inherit property of money after my IVA is signed? (assuming it is)

[MelanieGiles]

Then it is most likely, assuming creditors accept your IVA, that you will be required to hand over the inheritance to the Supervisor of the IVA to the extent of your outstanding creditors in full plus the costs of the voluntary arrangement to date. You may also be required to pay statutory interest on top of the debts, which is calculated at 8% per annum.

This will all be dictated by the actual terms of your IVA, so be sure to check the small print to ensure you are fully aware of your commitments in this regard.

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

[snoogle]

Thanks Melanie have had a read through the terms and conditions and it seems that appropriate equity would need to be released at the end of the arrangement to pay the debt in full which is fair enough.

Just so I'm really clear with inheriting things though - am I able to refuse inheritance? (appreciate whats been said in previous posts about the spirit of IVAs and I agree, but want to have options straight in my head should the need arise)

[MelanieGiles]

Not really.

The reality with regard to windfalls/inheritances, is that it is very unlikely that the IP will ever find out if you have received one. Therefore, this aspect of personal insolvency very much relies upon the integrity of the individual concerned, as the IP will trust his or her client to be honest at all stages of the game.

Of course if your relatives are aware that you are entering into an IVA, there is nothing to stop them amending the terms of their will - but this should not be done by your instigation.

My best advice is honesty is the best policy. You will come out the other side a better person, with no guilty feelings that your creditors have been cheated out of money they were rightly entitled to receive - and after all you did borrow the money with the integrity that you meant to pay it back!

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

[snoogle]

Thanks again Melanie and I agree I should and am aiming to pay them as much back as possible as I said in another thread if my IVA is rejected am more than happy to join a debt mgt plan - all be it a very long one!

[MelanieGiles]

With that sort of attitude you deserve to have an IVA accepted. The very best of luck and don't forget to post and let us know how you get on.

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

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