I have not yet entered an IVA but have approached a couple of companies that both suggest I should be accepted.
One concern is that I expect to receive an inheritance in the next few years (he's not dead yet but not well so I'm just being rtealistic not mercenary), that is far larger than my debts. I have searched the forum and it suggests all windfall money goes into the IVA but both of the companies I have spoken to say that I would be able to get a full and final payment agreed by the creditors.
Who is correct? Is a windfall clause always present in an IVA?
As far as I am aware the windfall clause is always present. What would happen is if you received an inheritance and it was more than you owed in total then you would only pay that plus interest and keep the remainder for yourself
I'm pretty sure it is, and totally agree with Ray.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I know some clients have had their names removed from wills prior to entering into an IVA or bankrupty. The new beneficiary would be a son/daughter/spouse/sibling and they would then inherit the money.
The will can be changed back after the insolvency but it would mean informing the person who is bequeathing the money of the need to change. This can be quite a tricky conversation.
Hi
I would say that it is almost certain that all IVAs will have a windfall clause and if so all the inheritance would have to be paid into the IVA upto the original debt value and IP fees
Regards
Thanks for the replies. Much what I suspected but this raises a concern as why the IVA companies I spoke to have an alternative view. One of them gets great reviews and posts here...?
I do agree with Andy, but it may well depend upon individual circumstances. You may be able to offer it as a full and final but that would need to be discussed with your chosen IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It will definitely come, its just a matter of when. I have already setup informal arrangements with most of my creditors and reduced my monthly payments significantly although most are now close to defaulting. Some are offering full and final settlements that if circumstances were better I'd jump at.
If you can hang on with your informal arrangement, that would be good, or, as Helen says, enter a DMP. The inheritance would then be safe and once you did receive it you could negotiate with your creditors.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
hi john i am so sorry for in advance in even in my iva chairmans report i have windfall clause and my states that must be handed in the benfit the crediters say you had 30k of debt and you was in the iva and you came in to 20k you would have to hand all of it over to benfit them
Andy Davie wrote:
Hi
If you expect the windfall then you should consider the DMP option alongside the IVA option.
Regards
That's kinda how I'm feeling now, a number of my creditors have already frozen interest and accepting low payments so its probably no advantage to settle this now by rushing into an IVA, I think I need to take my time doing what I can and look towards full and final settlements at some time in the future. I'm self employed/company director so my income has the ability to vary tremendously from qtr to qtr so might get the opportunity to do a deal or two as I go along (hopefully..) or with any luck some of the things I've been doing to improve the business might begin to pay off..
