If you are lucky enough to have a wndfall of say £10,000 ( not that I have )and it is paid into the IVA. Does this payment count towards the total IVA arrangement figure or does it count towards the total debt that you owe your creditors.
It counts towards the total debt owed. For example, if you won a million your creditors would be paid in full plus statutory interest and after fees the remainder would be yours. It would hardly be fair for creditors to receive 25p in the £ and you fly off to Rio with the rest.
Smaller windfalls serve only to improve the dividend on offer to creditors and are one reason that IVAs are accepted. Creditors may accept a low initial dividend but with annual reviews, fourth year valuations and windfalls, there is a possibility that the original dividend is enhanced.
