Separating our IVA's

[julie376]

hello - how can I separate our interlocking IVA's please as I have inheritance coming just to myself which will cover all the debts in my IVA but wont quite be enough to cover my husbands so obviously I would rather be able to have some of the inheritance to invest for my daughter & continue carrying on paying my husbands IVA. Many thanks

[Foggy]

You need to speak to your IP --- but I suspect that it might be too late as you are already aware of the inheritance and it is already an asset of both arrangements.

[julie376]

Hi Foggy
We have only had the IVA since 27th October- is there anyway to get out of it please as the inheritance would have paid off all our debts but the IP apparently takes 20% of any windfall payment

[Foggy]

The IP will take 20% of any realisations, as well as a nominees fee. The only way out of the arrangement now is to allow it to fail by witholding payments --- however, as I have said, the inheritance is already an asset and is payable. Creditors might well sue for bankruptcy if the IVA is failed, knowing this money is available.

It is possible that the IP will be willing to separate the IVA's before the inheritance is realised. On,y he or she can say. But worth the ask.

[julie376]

Hi again - I know I am a beneficiary but I don’t know the amount I may receive yet can I ask for the Iva to be separated without saying about the will?

[Foggy]

You could -- they might ask why or they might put 2 and 2 together when your inheritance hits your IVA. You might be able to maintain that you didn't know about the bequest until later on.

[julie376]

My relative died the same day that we signed the Iva paperwork- would this still mean the inheritance is an after acquired asset please?

[Foggy]

I am not your IP -- but, in my opinion, it would be, yes. I have views at variance with the industry on this and would argue that nothing is definite until such time as the Will is approved and probate granted, but the industry rely on date of death.