I’m just over 2 years into a 5 year IVA. My monthly payments are £234 and I have roughly 8k left to pay. I’m going through the courts at the moment for unfair dismissal from my previous employer and have been offered a settlement fee of £5,000. I want to accept this money but only on the pretence I can make a full and final offer to my creditors, if my offer is rejected will I still have to pay the money in. Thanks
I imagine your IP will regard the settlement as a windfall and payable into the IVA regardless. It would not be available to use as a full and final offer as they would be getting it anyway.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We use the term windfall loosely. Standard terms and conditions refer to "after aqcuired assets", being an asset worth more than £500 acquired during the course of the IVA". Part VI, Section 14, Sub section 14(2) states that the supervisor may claim as an asset of the arrangement any after acquired assets.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Wed Dec 11, 2019 6:21 pmDonny123 wrote:
Thanks for the clarification. What would your recommendation be?
I would play on the wording that the supervisor "may" claim an after acquired asset and appeal to his or her better nature. They might allow you to retain some, or even allow you to put it forward as the F&F --- worst they could do is say no !
Hiding it, however tempting, isn't really a safe option --- these things have a habit of being discovered and the whole IVA could be flushed as a result !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Having spoken to my parents today they are prepare to offer me 1-2k to pay off the IVA along with the 5k that I may get from the settlement. Perhaps I should’ve made it clearer that ‘hurt feelings’ is also part of the claim I put in against my previous employer. I am also struggling to make payments and survive (car issues, rising bills costs) and even though I am making the monthly payments in full I am really struggling with living. Is there a way of putting this all together to work in my favour? I don’t want the 5k to go into the IVA then it fail a few months down the line when I could’ve (in my mind) paid it off.
The ability to 'boost' the amount available would certainly help. You would have to make it clear that the 'boost' from parents would only be available should the compensation be accepted as the bulk of the F&F,otherwise it would be retained by your parents.
When people in an IVA get insurance compensation they are often (not always, but most IP's follow the bankruptcy guidelines on this) allowed to retain compensation for "Pain and Suffering", as long as it is described as such in the judgement. It could be argued that your element for 'hurt feelings' might fall under this description.
Hopefully your IP is approachable and will consider the arguement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Unfortunately I suspect that all of the monies will have to be paid over into your IVA and if you want to put forward a full and final it will still need to be based on the remaining £8k.
