I may have been left some money in a will, as I am two years into my IVA and if the amount of money that I inherit is substantially greater than my curent arrangment, what would the outcome be.
Hi! The inheritance will be deemed as a windfall and need to be paid into the iva! The debt you will need to pay is your total debt which was accumulated prior to the iva and not the amount agreed through the arrangement! Also you will be required to pay the fees plus a possibility of statutory interest at 8% of the debt!
Statutory interest is not always payable so best to check your paperwork and with your IP. As Nutkins says you will pay 100% of original debt plus IP fees ..... After this any left is yours
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
If the amount is greater than you are due to pay but not greater than your overall debt the money will paid into the arrangement and your IVA continue on as normal. If you need some of the money to change your vehicle or carry out essential home repairs creditors may allow you to retain some but a variation will be required.
You need to inform your IP as soon as you are aware of the winfall even if you have not yet received the money.
