Hi,
Someone I know who is in an IVA also has received a quite large compensation cheque. They are thinking of using a cheque cashing service or putting the money into an old savings account and not declaring I’ve told them that this is a TERRIBLE IDEA! surely the IVA company would find out at review time ?!
Quite possibly. Depending on what the compensation is for they could possibly keep some.
If their IP finds out it could result in failure of the IVA and could possibly be classed as fraud.
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 is a risky move .... defrauding creditors is an offence that could fine, not only the IVA flushed down the toilet but an appearance in court !
There is a chance that the IP wouldn't find out, but there is also the possibility that they will know, or it will come out of the woodwork at some point. It is possible that the Insurance company could do an insolvency check and inform the IP directly and the IP will wait to see if they get told by your friend and act accordingly.
But ... as Kallis says ... it is possible that they will be able to keep it anyway, without any of the angst, depending on what it is for,
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Some cheque cashing places do an insolvency check themselves before accepting the cheque, this is mainly to ensure the person isn't BR but could flag up the IVA as well. Too dodgy a risk that I would have been willing to attempt though.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
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