Hi im now 1 and nearly half a year into my iva which has really helped me .But in this life of its buts and whens lol a question has sprung to my mind .My mother who is 76 years old has left inheritance to me and my sister of her home and her savings investments etc.Should the worst happen which hope it dosent what will happen ? Will I have to pay off the iva plus the added interest on the debts accumulated and have to pay it all back in full or would they accept the full ammount of the iva at the time of applying for it ? Or will they add on the extra interest lost during my time in the iva ?
To clarify my question if in an iva and I recieve a substancial inheritance will I owe full interest on the initial balance of my loans ? Would this be added or would they accept the total debt at the start of the iva plus the total ammount owed ?
Id appreciate any advice on this matter .Im sure one of you guys will inform me .Great forum this its saved my life and so greatfull to you all for you very informed replys to such a sensitive matter .I cant thank you all enough
During an IVA you actually owe the full original debt as at the time the IVA started, plus fees and possible statutory interest at 8% p.a simple interest --- some arrangements will exclude this element.
If the worse should happen the IVA will want an amount up to the balance of that amount. Anything over this figure will be yours. If the inheritance does not cover this amount the IVA will continue until such time as this figure is passed or the arrangement comes to term.
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
Depending on situation should this happen, you maybe able to request statutory interest element be removed - I had inheritance that ended my iva and creditors were asked to accept the original debt amount but to remove need for statutory interest and it was agreed.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !