Hi my proposal for IVA has just been signed and a meeting of creditors is to be arranged soon by my IP. I have a child Trust Fund for my daughter with one of my creditors will the IVA affect it? Do i have to transfer it to another place, advice please.
I would think that it would be ok, but hopefully one of the experts will be along to advise further.
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
Given that your proposal has been signed what did your IP have to say about the trust fund?? I am not sure whether creditors would want this or not,but if there is any significant amiunt sitting I would have thought an IP would have told you prior to your signing anything.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Skippy wrote:
I agree with the others. As the money is in trust I would have thought it would be safe.
But surely if you have been putting money into a trust(and I am making an assumption that this is the case),rather than making payments to creditors,then creditors would see this fund as being money they have a right to. If however all the money in the fund was put there by a relative as gifts then thats another matter.
Its surely the same if you have £500 of shares that you bought a year before entering an IVA. Creditors would expect this to be released into the pot.
I am sure Mel will have the definative answer for us all soon.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
It's the government trust fund though by the sounds of it, so the money belongs to the child and can't be touched until the child reaches the age of 18.
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 have one of these for our daughter - not that we pay into it at all now - but it is in my daughters name until she is 18 and we intend to invest more in it for her after the IVA is over.
I would assume that anything already paid in to it would now belong to my daughter but also that creditors would not allow a budget for continuing additional payments whilst in an IVA.
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
I think that if you can make any payments out of savings from your allowances then you can pay them into the account.
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
The trust fund is held in trust for your daughter - so it does not need to be included into the IVA and would not be a vesting asset under bankruptcy proceedings either.
You can continue to save into the account, but only from monies which are not available to creditors - ie out of your share of uplift payments.
Would that include any savings you could make from your monthly allowances?
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
I wouldn't do that - it would be more difficult to get the money back when it was needed. Better to just put that in a separate account where access is relatively easy when expenditure is required.
