Critical Illness and Iva

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bamf17

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Post by bamf17 » Sat Dec 12, 2020 10:22 pm
Evening,

Could someone tell me if a critical illness payment is classed as a windfall. On my creditors website it says that payments can’t be taken from an insurance payout and ive looked through my contract regarding windfall payments and it is very vague. My creditors are aware that I have cancer and am signed off work which is expected for up to 18 months possibly more whilst I focus on my treatment and recovery. This money is in no way a windfall to me as this will now be used to help me pay bills and get me through the next year or so of treatment.

As my creditors website says that they can’t take money from insurance payouts do I still need to even mention it? As it’s not from a lottery win or inheritance etc? Thanks

luluj

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Post by luluj » Sun Dec 13, 2020 5:00 am
My understanding from what you have said is in your documents, it is yours to enable you to maintain your day to day expenses during this difficult time.
I would personally inform my IP and evidence your salary stopping, and this payment coming in to bridge the gap.
I hope your treatment goes well over the coming months x
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kallis3

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Post by kallis3 » Sun Dec 13, 2020 8:40 am
I, too, hope that your treatment and recovery go well. You could always ask if your IP will put forward a variation to accept payments to date in view of your health condition and complete the IVA.
Sharing from experiences of dealing with debt
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bamf17

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Post by bamf17 » Sun Dec 13, 2020 8:46 am
I’ve only been in my IVA just over a year so if I done that it would mean all of my money would go into the IVA. I need the money to live off and pay my bills etc (which includes my monthly IVA payments)

kallis3

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Post by kallis3 » Sun Dec 13, 2020 9:22 am
Explain this to your IP and see if you can get your IVA completed with payments to date. I'm sure they will be sympathetic considering your circumstances.
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

Foggy

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Post by Foggy » Sun Dec 13, 2020 10:18 am
The site that states that monies cannot be taken from insurance payouts is a bit 'one size fits all', as some payouts are due to the IVA, some not and much of this grey area is discretionary, where IPs fall back on Bankrupty practices where there is no specific mention in IVA terms.

If, for instance, the CI payment is used by you, with creditors agreement, to replace income then, I imagine there is a possibility that creditors will want IVA payments to continue as well.

I agree with the others in that you need to chat to your IP .... not only is your income going to change dratically, but so are your outgoings and the last thinbg you need are any nasty surprises. Kallis's suggestion that you ask about settling on payments made to date is a good one --- a little early in the IVA, really, but certainly worth throwing the idea into the pot. Or, at least, an extended payment break.

I know you see a risk in mentioning it to your IP, but the stress of waiting 'to be found out' could be more damaging to your health in the short to medium term --- and that has to be your priority.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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bamf17

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Post by bamf17 » Sun Dec 13, 2020 11:07 am
Thanks for responses! I still want to pay my monthly IVA contributions I have no problem with that! I just don’t want them taking the entire payout to pay off the IVA as then I will be left with no money!
What does it mean when you say settle the agreement with monies already paid? I’m not sure if they would agree to that as I’ve not paid off much! I’ve only been in the Iva since august 2019 and I only pay £85 a month!

kallis3

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Post by kallis3 » Sun Dec 13, 2020 11:27 am
You can but ask. With your problems they could ask creditors to accept your payments to date to finish the IVA. How much was your total debt?
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

Foggy

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Post by Foggy » Sun Dec 13, 2020 11:37 am
To be fair, with a payment of £85 per month, creditors are actually going to get very little anyway, so may be willing to call it quits in the circumstances.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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bamf17

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Post by bamf17 » Sun Dec 13, 2020 11:55 am
My total debt was £11800 and I’m expected to pay back £6120, I’ve paid back £1360 in total! Payments always been made on time even after I was made redundant, then diagnosed with cancer a month after! I’m in my twenties with a young child. I’m not sure if any of this would be considered or not 🤷🏼‍♀️ Like I said I’m happy to still pay my monthly contributions I just don’t want them to take a huge lump sum as I have no other source of income to pay household bills/childcare/medical costs etc

kallis3

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Post by kallis3 » Sun Dec 13, 2020 12:18 pm
Please speak to them. If you could finish early it would mean you could get on with your life debt free.
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
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