Inheritance and my IVA

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lauren711

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Post by lauren711 » Mon Mar 22, 2021 4:21 pm
Hi foggy I have just seen you quote in another post regarding Inheritance “ it’s about the date of death not the date of distribution that matters in a iva “

So does this mean if somebody dies before you enter the iva but you are made aware of an inheritance during the iva you are able to keep it ? I received a small inheritance from someone I wasn’t aware died 6 months before I entered into my iva , the inheritance was distributed 4 months after I started my iva . Obviously when setting up the iva I had no idea about any Inheritance I was going to receive nor was I aware anybody I new had died .
The cheque I received from the family member actually bounced and I did not receive the inheritance after all of that , I have no way of tracing the family as it was not dealt with solicitors it was just sent with a hand written letter and no contact details , I informed my ip of this and they said as the cheque bounced ( which I proved ) then obviously I could not pay this into the iva and I did not need to try and chase it up . But I do worry what if the family member contacted me again regarding the inheritance as the person who left it died before I entered into my iva could I possibly keep it ? Other members of my family did receive there’s but the signature on my cheque was wrong so it bounced and I left it as that , a family member who is aware of my iva did suggest they ask the family member for my share into their bank account to keep for me once my iva is finished , is that a possibility ? As they have contact with the family member but I do not due to family rifts .

Foggy

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Post by Foggy » Mon Mar 22, 2021 4:30 pm
No, unfortunately, it doesn't work the other way around. If you get the inheritance before the IVA you would be expected to use it to address debt problems before declaring insolvency, if close to the start of the IVA. Or, to declare any of it still sat in the bank, as an asset.

If you have the asset during the IVA, it can be pulled into the arrangement, so, in the post you saw the quote, although, in that case, the inheritance was paid over after the IVA, the date of death was during the IVA and so the asset is captured by the IVA.

Is that clear ?? If you get it after your IVA finishes, it still belongs to your creditors ( if the IP ever became aware of the fact) .
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
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