I have been left money to make a fresh start. Could I come out of my IVA ?

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martyn205
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by martyn205 » Sat Nov 25, 2017 11:42 am
Hi I took out a IVA a year and a half ago and in the time my grandparents passes away and I have been informed by a friend that any inheritance will go to the creditors which in my discussions with IVA company I don’t believe this was informed to me and maybe a debt management program would of been more suitable. As the money left to me was to be used for a fresh start while I could of paid off some of the debts with it . Any advice would be great . Could I come out of my IVA and pay off some of the debts myself? While also have money to put towards a new car or something . The sun is around 10000 with debts at 12000 thanks
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Foggy
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by Foggy » Sat Nov 25, 2017 11:49 am
I am afraid that the money is payable into the IVA as per the agreement -- it will mention this in the terms (an inheritance is also a windfall). You might be able to negotiate with your IP to keep some, but I wouldn't put any money on him / her agreeing.
Even if you come out of the IVA now, the inheritance still belongs to your creditors.
You could try to see if your creditors would be happy to agree to end the IVA early, in view of the money they are now getting -- so you will get your fresh start earlier than in 4 or 5 years time.
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martyn205
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by martyn205 » Sat Nov 25, 2017 1:20 pm
Foggy wrote:
I am afraid that the money is payable into the IVA as per the agreement -- it will mention this in the terms (an inheritance is also a windfall). You might be able to negotiate with your IP to keep some, but I wouldn't put any money on him / her agreeing.
Even if you come out of the IVA now, the inheritance still belongs to your creditors.
You could try to see if your creditors would be happy to agree to end the IVA early, in view of the money they are now getting -- so you will get your fresh start earlier than in 4 or 5 years time.



Thanks for the fast reply . If I was to come out of the IVA how does it work that the inheritance is still owed to the creditors ? would it mean setting up another payment plan with each individual creditor? Thanks again
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Foggy
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by Foggy » Sat Nov 25, 2017 2:08 pm
martyn205 wrote:
Foggy wrote:
I am afraid that the money is payable into the IVA as per the agreement -- it will mention this in the terms (an inheritance is also a windfall). You might be able to negotiate with your IP to keep some, but I wouldn't put any money on him / her agreeing.
Even if you come out of the IVA now, the inheritance still belongs to your creditors.
You could try to see if your creditors would be happy to agree to end the IVA early, in view of the money they are now getting -- so you will get your fresh start earlier than in 4 or 5 years time.



Thanks for the fast reply . If I was to come out of the IVA how does it work that the inheritance is still owed to the creditors ? would it mean setting up another payment plan with each individual creditor? Thanks again


It is part of the agreement that windfalls during the IVA belong to the creditors. Even if you cancelled the IVA now ( which could be expensive as creditors will add back lost interest and possible charges) the windfall is already due to the IVA estate.
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MerlinL14
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by MerlinL14 » Sat Nov 25, 2017 6:59 pm
Sadly, as Foggy says, even if you allowed your IVA to fail the inheritance would still be included as a windfall and you would lose the lot to the IP. Circumstances can not be foreseen and like so many of us you now find yourself in a better financial position than when things were really desperate and stressful. Not easy to do, but you will just have to chalk it up as a oh s**t! glitch in your life and get on with the IVA best you can. Unless the amount is substantial enough to make an F&F offer to your creditors then you will have to complete the term. Sorry.
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luluj
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by luluj » Sat Nov 25, 2017 8:09 pm
Echo foggys views and advice - your inheritance is due to be added to the "creditor pot". Not what you wanted to hear - sorry
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kallis3
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by kallis3 » Sat Nov 25, 2017 9:21 pm
You won't know when anyone passes away, but it will have to be paid across.
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