Inheritance received

[lauren923]

Inheritance - I am currently 6 months into my iva , I pay £249 each month , my debt at the start of the iva was £19857 and I think it worked out I would be paying back £14940,
To date I have paid 249 x 6 so £1494.

I have just been sent a 10k cheque from a family member I did not know , I have been left this money from a family members estate which I had no idea about .
I understand 100% of this has to be paid into the iva , that’s my part of the deal , i have a car balloon payment due next year which is 5k and have been refused by multiple company’s for re finance for this , so come next year I may not have a car to get to work ( I am a care worker so I need a car ) I have explained this to my iv practitioner and have asked if I can keep 5k to pay my car off , and give the remaining 5k to my creditors and then increase my monthly iva payments from £249 a month to £538 a month as I wouldn’t be paying the car finance , they have addressed this proposal to my creditors but have told me not to hold my breath .

Will this 10k even touch my debt ? Iv been told my iva won’t be any less than 5 years and my Monthly payments won’t decrease , so what will this 10k actually towards , will it write off any of the 12 creditors I had ? None of my debts were over 3k , .

Many thanks

[lauren923]

Same person ^
Bare in mind if they allowed me to pay my car finance off with my inheritance and my payments increased by £289 a month on top of what I already pay to my iva £249 this would mean my creditors got 15,000 rather than the 10k windfall , I have rang 6 different companies to enquire about re financing my balloon payment with them ( all iva approved ) and because of the covid pandemic they do not offer lending at the moment , so come the time when my balloon payment is due I won’t have a car to be able to work so without a job how would I pay for the iva anyway ? But they don’t seem to understand that

[kallis3]

I doubt you will be able to keep the £5k but you can but hope.

You will always owe the full amount of your debt plus fees and possible statutory interest and the £10k will be split between all of your creditors. As to cars, is there a family member who could buy a cheap runaround for you? You could do what Foggy did and buy 'Ebay Bangers' until your IVA finishes so you can get to work.

[Foggy]

It is always worth negotiating -- although the bottom line is that the entire inheritance is payable into the IVA. They may see the logic in your proposal.

As regards amounts owing etc. During the IVA you always owe the full original debt, plus fees and possible statutory interest. So the IVA would only end early if you hit that figure, being, in your case, around £25k plus interest at 8% p.a .... that is where the £10k will go -- against that amount.

To be fair you have gotten further than many by getting the IP to put it to creditors ! So, fingers crossed.