Got windfall of 11000, what are the chances of creditors agreeing to f&f?

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Angelad0281
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by Angelad0281 » Wed Jan 03, 2018 5:30 pm
I am 2 years in iva ,16000 debt. paying 100 month 5 years paying 2700 fees 3300 to creditors, got windfall of 11000 going directly to iva, whats chances of creditors agreeing to full and final payment total paid into iva would be about 12000
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kallis3
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by kallis3 » Wed Jan 03, 2018 5:36 pm
Could be wrong but I think the IVA will swallow it all up.
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MerlinL14
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by MerlinL14 » Wed Jan 03, 2018 5:48 pm
I think you would be real lucky if it was even discussed. Like Kallis3 I believe the IVA will swallow it all and just make a substantial dent in the dividends to your creditors.
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Foggy
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by Foggy » Wed Jan 03, 2018 5:56 pm
As above the windfall is due to the creditors and payments on the IVA will continue until the full original debt plus fees and possible statutory interest are paid. Your IP might agree to ask creditors to forgive the interest element meaning the end might come sooner.
GottaGetThruThis
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by GottaGetThruThis » Wed Jan 03, 2018 6:56 pm
Angelad0281 wrote:
I am 2 years in iva ,16000 debt. paying 100 month 5 years paying 2700 fees 3300 to creditors, got windfall of 11000 going directly to iva, whats chances of creditors agreeing to full and final payment total paid into iva would be about 12000


Angela,

Have you received the windfall yet?

What type is it?
If an inheritance is imminent but not certain yet, could you get the will amended to say your partner?
If it's a prize or gift does it have to be in your name and come to you?

Asking because once in an IVA, it appears that any windfall due to you alone is effectively forfeited, up to the valueof your debts at the start of your IVA plus 8% APR and IP fees.

The only ways round this would seem to be the benefactor naming someone else or a beneficiary trust (with a clear stipulation that it cannot be paid during insolvency) instead of you.

If the money hasn't been given to you (or an executor of a will hasn't declared it yours) yet then you can't be seen to be deliberately depriving yourself of assets yet.
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kallis3
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by kallis3 » Wed Jan 03, 2018 7:08 pm
If the windfall is known about during the IVA then it is due to your creditors..
barassic
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by barassic » Thu Jan 04, 2018 7:06 pm
Would that be classed as money laundering in the case of inheritance ?
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Foggy
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by Foggy » Thu Jan 04, 2018 7:11 pm
barassic wrote:
Would that be classed as money laundering in the case of inheritance ?



No --- if the changes are made by the benefactor before death, they are allowed to decide who gets whatever. However, creating a trust could be challenged as it could be seen as a device to deprive creditors if the trust was created, for instance, when the potential beneficiary was already in the IVA (so a situation which could be foreseen). It isn't laundering, but depriving creditors of assets.

Laundering is where the money is put through a trail designed to hide it's origins.
barassic
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by barassic » Thu Jan 04, 2018 7:28 pm
Just sounded a bit dicey to me Foggy.
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kallis3
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by kallis3 » Thu Jan 04, 2018 8:54 pm
Agree with Foggy.
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