When I was first diagnosed with my brain tumour I was pretty sure that it wouldn’t pay out as it didn’t meet the qualifying criteria. I have just had a call today from insurer to say this will pay out. It is only for £15,000 but do I have to declare this as it’s not a windfall or inheritance it is to assist with dealing with a critical illness. My brain tumour was removed 2 weeks ago but my worry is my income could drop and I would prefer to put this money away in case this is needed to top up income. Also my employer could just put me on SSP if they wanted to as it’s their discretion. I just don’t want the IVA to take this all in case I need to fall back on it.
I know if I wasn’t in the IVA I would have used most of it to pay down my debts anyway and this is what I should do, but I feel for what I have gone through and the craniotomy I want to just put it away in case it takes me a while to get back to my salary level or I find it a struggle when I return to work and can’t do the same hours. What I’m saying is I just want it as a safety net. I’ve been through all the paperwork and I can’t see anything about insurance payout or anything medical related etc
An IVA proposal is usually drawn as an "all assets" agreement, where all assets are captured by the agreement unless specifically mentioned as excluded. So, to keep the money you need to get your IP and / or creditors to agree to it's exclusion.
The most common thing of this ilk we see are insurance compensation payments for pain and suffering, where, in the absence of any particular reference to this in IVA Ts & Cs, IPs fall back on to bankruptcy procedures where such compensation can be retained by the debtor. I do not know whether critical illness insurance falls into the same camp.
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
Had a message back from them today after being upfront about this. They have asked for the paperwork to pass to the supervisor to look at. Fingers crossed I can keep this as going forward if they haven’t getting all the tumour I may have to have radiotherapy and hence a reduced income so this will be used to top up my income. Also when I go back to work I will be declaring my IVA to my employer and I’m worried sick this will result in maybe losing my job so least I will have this to fall back on to recover properly if I need to look for another job. I wish I had held back a little on rushing into the IVA and then I could of paid off some of the lower debts with high monthly payments and maybe might of just managed going forward. Everything is such a mess
I hope you get the result you want and need and your health recovers.
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