I was made bankrupt last year and have recently lost both my parents which means I will inherit their house.
This means that my assets will be sufficient to pay off the creditors in full.
But I want to keep the house, and I am arranging a loan against it that will cover my liabilities.
My IP said that the best way is to set up an IVA which will then enable me to have the bankruptcy annulled. He has put forward a proposal (100p in the £) but a large creditor is demanding that I deposit the full balance of the inheritance (i.e. much more than my liabilities) into the nominees account. This is crazy for all sorts of reasons.
Can a creditor do this? I thought that it was the nominee who adjudicated whether the proposal would be fulfilled by me. So is this creditor overstepping the mark, and can we tell them that they cannot object to the proposal on these grounds?
It is common practice in, say, inheritances that the full inheritance is held by the IP until such time as the exact settlement amount is determined and paid over, although I have seen it worked in the same manner as a property purchase completion, in that the inheritance is held to the IP's order in the client account of the acting solicitor. However, if the executor / administrator of the estate is a private individual, I doubt that this would be acceptable.
Creditors are free to amend and introduce conditions when the IVA is proposed --- the ensuing contract is between you and the creditor and the IP then oversees it's operation. The IP does not negotiate their own terms, other than fees.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk