windfall from family bereavement

[rickyg33]

how is a legacy of money from a family breavement treated within the IVA system?

[Adam Davies]

Hi
If you are in an IVA then it is treated as a windfall and you will be required to pay an amount into your IVA that does not exceed your original debt plus IP fees and statutory interest[less payments already made]
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[rickyg33]

If the IVA is in my name, and my wife receives the windfall, am I right in beleiving that the windfall can't be touched by the creditors?

[MelanieGiles]

That is correct - your wife's money is hers to keep (but she might want to give you some to offer a full and final settlement to your creditors).

[vickir]

Would you have to pay back the original debt or the amount agreed after the IVA?

[MelanieGiles]

The original debt plus all outstanding costs, and most likely statutory interest at 8% per annum on top.

[rickyg33]

by 'original debt' do you mean the IVA agreed amount or the total debt on which the IVA was calculated [the total of the credit cards before coming to an agreement].

[MelanieGiles]

The debt you incurred on the credit cards - the IVA does not change the overall debt figure. You always owe the overall debt figure, and this is not adjusted until the IVA is concluded.

[vickir]

Wow, so if your original debt was 27k, and reduced to 15k under the IVA, you would have to pay back the 27k plus IP's charges plus 8% interest?

[MelanieGiles]

Seems fair doesn't it - paying back the full amount you originally borrowed because you have benefitted from some unexpected money.