Can someone clarify please, it would be much appreciated
What are the obligations if a sum of money is received prior to an IVA being agreed, in this example, negotiations to agree an IVA are undertaken, creditors meeting is booked and IVA is approved in March 2014 with first payment being made to creditors on this date.
However, 2-3 months prior to this date,a sum of money is received, is there an obligation to declare this sum of money?
You will need to declare the money once the iva is approved.
You should have declared it in advance of the iva - all providers ask for details of any savings etc.
Saying all that, is the money a 'gift' or a 'windfall'. If it's a gift, there is usually no need to declare it, if it is a windfall, you usually have to hand it over.
How much are we taking about?
My opinions are just that: Based on my experience and being a self-employed IVA customer.
If the meeting has not taken place you could withdraw the proposal if the money would clear the debts or enough of them to leave you back on an even keel. Otherwise it is cash in hand and needs declared.
All assets need to be declared prior to the IVA being presented to creditors. If this is a sizeable sum and the suspicion is that it was "hidden" the IVA could fail.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
