I would certainly urge you nickjohn to seek clarification from your IP on the issue of saving a little here and there as you are going along, if you can, as it is not an insignificant issue. It would certainly be interesting to know who your IP firm is.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I have had employers over full and final settlements for employees in the past. On one occasion the employer wanted to promote the client to director but the articles of association forbade this so he needed the client to be out of the IVA.
Many employers become friends and will pay off IVAs just to help their employee. Paying back an employer over a longer period of time may be preferable to a client and from the employer's point of view their worker will not be looking elsewhere for a better job.
I can understand your cynicism Lem but there are plenty of people out there with plenty of money who can easily afford to settle IVAs for friends and family.
Carry on with the musings, Nick. It's always good to provoke thought and have a good discussion (as long as we remain civil ... I was going to sat "adult", but that would disqualify me right away ).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
In my firm we get independent confirmation of the source of third party monies - by conducting the usual money laundering checks and asking for sight of where the funds are coming from. Even IPs are allowed to be cynical occasionally!
Lem - I think the chances of getting your employer to give you a loan to pay off your IVA are less hopeful than the Queen popping into my office for a cuppa!!!
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
In my firm we get independent confirmation of the source of third party monies - by conducting the usual money laundering checks and asking for sight of where the funds are coming from. Even IPs are allowed to be cynical occasionally!
Lem - I think the chances of getting your employer to give you a loan to pay off your IVA are less hopeful than the Queen popping into my office for a cuppa!!!
If, in the course of your checks, it transpired FF funds were from, say, receipt of back pay, bonuses, overtime (which had been allowed under 50/50) and other monies saved through the term of the IVA. Would you allow the FF or would you feel morally the debtor had a duty to their creditors to use this money as a one off payment and not a FF and continue to make the rest of their monthly payments. Therefore increasing the overall settlement of the original debt...
There is no moral duty here at all Nickjohn. It is your money to do what you want with it. If you wanted to offer it as a full and final settlement then happy days.
Diligent and thorough IPs, coupled with honest clients, would mean that in only exceptional circumstances the monies saved would be of a significant level - but I do have one client who earns regular and substantial bonuses - and he is allowed to retain upwards of £10k per annum.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
There is no moral duty here at all Nickjohn. It is your money to do what you want with it. If you wanted to offer it as a full and final settlement then happy days.
Diligent and thorough IPs, coupled with honest clients, would mean that in only exceptional circumstances the monies saved would be of a significant level - but I do have one client who earns regular and substantial bonuses - and he is allowed to retain upwards of £10k per annum.
I must say it has been a real eye opener being on the forum recently and I have learnt a lot. Thanks for your time and feedback..
While I think it is a great result for Nicola to have received 50% I do not agree with what her IP has decided. Perhaps he/she called a variation and received sanction to treat the money in this fashion but I still believe the full amount was due to the IVA.
The money was earned pre IVA and effectively was an asset of the IVA when the IVA was approved. It is probably incorrect to treat the money as a windfall but it may be more accurate to describe the money as a debtor or money owed to the client. When anyone enters an IVA monies owed to them are an asset of the IVA and I see no reason why backpay should be treated any differently. A windfall is something that arises post IVA and given that this entitlement existed at the outset it probably should not be treated as a windfall but as a debtor. The net effect is the same anyway in that I believe the full amount should be paid to creditors.
