Posted: Sun Feb 25, 2007 3:45 pm
if i recive a lump sum payment (inherit) ect. what will happen to it? Can i just pay off the rest of the IVA and go back to normal?
Hi steak and welcome to the forum
I assume that you are already in an IVA. If so, you will need to check the terms of your proposal and Chairman's Report of the meeting, to see what provisions there are with regard to such "windfalls".
It is usual that they be included within the proposal, so if you receive enough money to be able to pay all of your debts in full, plus the IP's outstanding costs, then you can pay off the IVA and as you say return to normal. You may also be required to pay statutory interest at the rate of 8% per annum, so do check those terms and conditions carefully.
If there is not enough money to pay your creditors in full, I am afraid that you will probably need to pay all of the money over to the IVA supervisor, and continue with your payments until either your debts and costs are paid in full, or the IVA runs for its duration.
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