Hi all,
Probably asked hundreds of times, but can't find a clear answer, hopefully, somebody will know.
I'm in an IVA, have been about 11 months or so. I don't earn megabucks and have no savings. A couple of days ago my mum just randomly decided to gift me and my 2 sisters £1000 each from her own savings into our respective bank accounts.
I immediately moved the money into a savings account, she wanted me to have it for emergencies so to speak.
So what do I do now? will the IVA take it when they see it's gone into my account? will I have to give them half? Is a £1000 gift perfectly acceptable for me to keep? Should I return it to my mum before it gets swallowed into the IVA?
I am not wealthy in any way, neither is my mum in the big scheme of things, probably sounds like a bad attitude regarding my debt, but I would hate it to be taken , I would sooner not have it and return the gift.
A lot will depend on the view your own IP takes --- or, indeed, if it is ever noticed. At review many IPs ask for the latest 3 months bank statements, so, if your review is more than 3 months away, or they ask only the the one latest statement, they will not see it come in and fly back out to the savings account. Unfortunately I see that your anniversary is about to hit, so see what they ask for, if they haven't already. Even if they ask for a statement covering the period this hit your bank, they might not notice. If they do notice, as I said, it will depend on your IP as to what happens to it. Most will allow you to keep modest cash gifts -- but, again, it will depend on their definition of 'modest'.
Giving it back might not solve the issue if your IP thinks you have done this to 'hide' it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Foggy,
Thanks for your reply. My point is , if the engine blew up in my car tomorrow, I would have the funds to fix or put towards fixing, to continue to work, to continue paying the IVA. You must be "allowed " to have an amount for these or similar scenarios, IVA or not. How much would be reasonable to have as savings for emergencies under an IVA?
As you noticed I think my review is around late feb or march, I don't know what impact covid has had on all of this though as i haven't been notified yet of my review.
What if the money was put into my account for me to pay somebody for an item or service my mum had had? and I just draw it out under that guise if questioned? what if I just spend it, its gone? just asking questions....imagine I saved it and at review was told that I had to pay it over. I just can't risk that,
In the usual 'run of the mill' IVA, if something blows up or need repairing we have to go cap in hand to the IP and ask for a payment break to cover the cost, which gets added back on at the end, extending the IVA. Anything by way of extra income or windfalls that the IP deems should have been paid to the IVA is often collected in the same way -- by extending the IVA to cover the 'loss'. We are not expected to be able to save much, if anything, from month to month. My allowable expenses for 'emergencies' was £10 a month !
If you say that you had it to pay something on behalf of your mum, as you mentioned, or even that mum had transferred it to you by mistake and you have given it back, it will be dependent on the IP believing you, at the end of the day.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I see..thankyou Foggy. I should imagine that we are only talking about £500 of this in theory, if you are allowed gifts of up to £500 without it affecting the IVA.
Still, all things considered and the info that you have kindly passed on, I think im going to draw at least half of it out and keep it squirreled away, and if it does get picked up, I will deal with then, its literally all the back up money I have haha, hardly pablo escobar here.
Saying that, I do understand the situation I'm in and that there has to be rules!
I have taken a payment holiday of a couple of months during this whilst changing jobs due to covid. does the review come after a year....or 12 payments?
This response will not be condoned on this forum but if your mother wishes to gift you £1000; take the money out and retain it, Bank accounts interest is zero anyway. (Keep it in a safe place for that rainy day) Also state that the money was only placed in your care for safe keeping and unfortunately now it has had to be returned.
If needs be get a letter signed to that affect by your mother.
As necessities of life and living are more important than an IVA or IP... (Again just my thoughts)
Ive decided that Im just going to draw out £500 put it away, if the IP questions it, im going to say that it was a gift of £500 each for me and my sister, she didn't want it going into her account to be swallowed up by bills so put it in mine, which I then drew out and gave her the cash, which can be confirmed by both parties if required.
Thanks all for help.
Hi lulu, Its ok we are "allowed " gifts of £500, im not going to beat myself up for slightly bending the truth over the other £500, hardly millions involved.
I'm paying the IVA a good amount of my wages each month and living under the consequences and restrictions the IVA entails.
All as I expected, but This kind and generous gift from my mum will be used as intended, to help me out.
Have to say I agree with Luluj - sometimes these things have a habit of coming back and biting you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hmmm, well if I think my explanation, backed up by signed statements would be pretty hard to prove that I was hiding £500...actually impossible, and that's if it even gets picked up. Appreciate the advice, I've decided on my course of action. I will take my chances ...over £500
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
We cannot condone this action on the forum. It is vital that whilst in an iva you work with your IP throughout and comply with the rules set out in your chairman's report at the outset of your IVA journey.
You may not think £500 is alot to worry over, but it can be the make or break of a situation, and IPs can take the relevant action if not kept informed of all changes.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
