Inheritance payment will mean I will pay more back in an IVA than I owed

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michael879
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by michael879 » Mon Jun 11, 2018 6:16 pm
inheritance payment after full 5 yrs of iva they want more now than we initialy started off owing
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Foggy
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by Foggy » Mon Jun 11, 2018 6:22 pm
michael879 wrote:
inheritance payment after full 5 yrs of iva they want more now than we initialy started off owing


During an IVA you owe the full original debt, plus fees and possible statutory interest. If statutory interest hasn't been already excluded you can petition the creditors to agree to it being excluded now -- if they agree it could save you a lump of the inheritance.
Even after paying all of the above, the total will probably be far less than if you had to pay the debts in the normal way with contractual interest.
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michael879
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by michael879 » Mon Jun 11, 2018 7:02 pm
thanks for your quick response. we originally owed £24,000 after paying £20,000 over the last 5 yrs. they now want £30,000 as a final settlement. we feel robbed
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Foggy
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by Foggy » Mon Jun 11, 2018 7:51 pm
On a debt of £24k over 5 years I would expect the total payable would be around £40k including statutory interest, so they appear to be shooting hgh there, unless they have agreed terms other than the norm with creditors.

Ask them for a breakdown of their figures and compare this with the fees agreed in the proposal and chairman's report.
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abbiesmum2003
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by abbiesmum2003 » Mon Jun 11, 2018 8:12 pm
sorry to jump in on the post... how is inheritance dealt with 'after' an iva? Surely if after closure it belongs to you not creditors unless it was known about before closure??
Or is any future inheritance dealt with same as PPi??
I only ask as we are technically finished just waiting to know equity release F&F situation but all contractable payments have been paid. But wjat happens if god forbid 6,9,12 months down the line theres unexpected inheritance...do creditors still get to claim it??
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MerlinL14
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by MerlinL14 » Mon Jun 11, 2018 9:25 pm
abbiesmum2003 wrote:
sorry to jump in on the post... how is inheritance dealt with 'after' an iva? Surely if after closure it belongs to you not creditors unless it was known about before closure??
Or is any future inheritance dealt with same as PPi??
I only ask as we are technically finished just waiting to know equity release F&F situation but all contractable payments have been paid. But wjat happens if god forbid 6,9,12 months down the line theres unexpected inheritance...do creditors still get to claim it??

No, creditors have no claim on an inheritance after you have received your CC. PPI is different as it has specifically been seen as an asset that is payable to your creditors or ex-creditors.
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Foggy
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by Foggy » Tue Jun 12, 2018 6:57 am
abbiesmum2003 wrote:
sorry to jump in on the post... how is inheritance dealt with 'after' an iva? Surely if after closure it belongs to you not creditors unless it was known about before closure??
Or is any future inheritance dealt with same as PPi??
I only ask as we are technically finished just waiting to know equity release F&F situation but all contractable payments have been paid. But wjat happens if god forbid 6,9,12 months down the line theres unexpected inheritance...do creditors still get to claim it??


As Merlin says, as long as the inheritance didn't arise during the IVA it has nothing to do with your creditors or former IP. IP's will generally state that the inheritance becomes "due" when the benefactor passes away. I would argue that this is not so until the Will is proved by passing probate, which could be some time after the death .... an arguement still to be tested.
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