Is a windfall clause always present in an IVA?

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John.mx

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Post by John.mx » Fri Jun 18, 2010 2:59 pm
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?
 
 

rayb

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Post by rayb » Fri Jun 18, 2010 3:01 pm
Hi John,

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
 
 

kallis3

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Post by kallis3 » Fri Jun 18, 2010 3:06 pm
I'm pretty sure it is, and totally agree with Ray.
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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.
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Michael Peoples

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Post by Michael Peoples » Fri Jun 18, 2010 3:29 pm
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.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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Adam Davies

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Post by Adam Davies » Fri Jun 18, 2010 3:39 pm
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
Andam Davies
 
 

John.mx

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Post by John.mx » Sat Jun 19, 2010 8:37 am
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...?
 
 

kallis3

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Post by kallis3 » Sat Jun 19, 2010 8:43 am
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
 
 

John.mx

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Post by John.mx » Sat Jun 19, 2010 8:45 am
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.
 
 

kallis3

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Post by kallis3 » Sat Jun 19, 2010 8:52 am
I think we all would have done that!

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
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jun 20, 2010 7:52 pm
John

Please set my mind at rest and confirm that this was not my firm who gave you this advice?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Keepingmyheadabovewater

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Post by Keepingmyheadabovewater » Sun Jun 20, 2010 8:25 pm
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
JOHN
 
 

Adam Davies

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Post by Adam Davies » Sun Jun 20, 2010 8:28 pm
Hi
If you expect the windfall then you should consider the DMP option alongside the IVA option.
Regards
Andam Davies
 
 

John.mx

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Post by John.mx » Sun Jun 20, 2010 8:34 pm
MelanieGiles wrote:

John

Please set my mind at rest and confirm that this was not my firm who gave you this advice?
No Mel, not your firm but your posts were some that I found that doubted the advice given.
 
 

John.mx

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Post by John.mx » Sun Jun 20, 2010 8:41 pm
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..
 
 

heavydebt

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Post by heavydebt » Sun Jun 20, 2010 9:06 pm
Sorry to hijack the post but do you pay up to your full debt before iva or the full iva amount?

Thanks.
The future's bright, the future's debt free. In 72 months to be exact!
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