I think you are allowed to keep money paid out for pain and suffering but not for loss of earnings as far as I am aware. Hopefully one of the other experts will have more knowledge.
Sharing from experiences of dealing with debt
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There is no specific way insurance compensation is treated in an IVA, but IP's tend to follow the usual pattern as used in bankruptcy cases, which, as Kallis says, is that compensation for loss of earnings will go to the IVA, but that for pain and suffering is usually allowed to be kept. It will have to be itemised on the payout papers.
There is a large element of discretion used here and only your own IP can tell you.
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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