what happens to compensation for injuries

[orchid5]

hello im in my first year of an IVA and i must say have had piece of mind to be honest, i was involved in a hit and run accident at the end of dec and have been offered compensation for the injuries i have sustained, what happens to that? Are my creditors entitled to any of that money if it has not been given for loss of earnings but for injuries only?

[Lisa2009]

It would depend on the wording of your proposal but i imagine as it isnt going to be for loss of earnings then it would be classed as a windfall and have to be paid to your IP for the benefit of your creditors.

If you are unsure, contact your IP and see where you stand

[Soulgrowth]

Hi Alayne ... and welcome to the Forum.

I am not an expert but I think that Mrs Skint is right in that if the compensation was not to cover loss of earnings as result of your accident then it would probably be classed as a windfall.

I do hope that you are feeling better now, what an awful thing to have happened to you.

How have you found your first year in the IVA? Do you have any tips to offer those just starting out on the journey?

All the best

Debbie

[MelanieGiles]

Personal injuries monies are not claimable in bankruptcy estates, and some IPs (myself included) will usually seek to exclude them within clients IVA proposals, so it could be an idea to check that out first.

[orchid5]

hello there folks i have now joined under the name of orchid5 but thankyou for your postings and Melanie i shall certainly speak with my IVA supervisor once i have something on the table as the first offer has been refused by my solicitors. Thankyou soul for your concern i am well on the way to recovery the windfall i would rather have done without to be honest but i will certainly seek advice as i had read that under the insolvancy act that unless it was purely for loss of earnings and not for injuries and suffering as a result of the accident then it couldn't be claimed and all i can say about my first year of an IVA is that it isn't all bad, i have had piece of mind and a stress free year however i am in negociations with my review so fingers crossed that goes well as i have had a hike of over £100 in my mortgage payments due to a fixed rate finishing back in Feb, thankfully a payrise managed to swallow that increase, phew!


I wish each and everyone of you good luck and i shall be a regular person on here as i didn't realise just how many people were like me, amazing how you think and feel such a failure but sometimes circumstances just don't help you.

Good luck and be safe everyone, om shanti, namesté.

Ax

[Soulgrowth]

It's great to have you on board [:)]

Debbie