Settling my IVA after equal pay claim windfall

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gaynor
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by gaynor » Tue Aug 21, 2018 6:48 pm
Hi I am 11 months into an IVA and I have just found out that I may receive a payment for an equal pay claim that I made against my employer. My original debts on entering iva were approx £11k and the equal pay payment I’m expecting is £35k. My question is will I have to hand over the whole £35k and wait for IP to settle my iva and return the surplus or can I ask my IP to send me figures for full and final settlement of the full amount of the original debt,plus fees and interest so that I can complete my Iva paying off all my original debt and keep the remainder of my windfall in the bank?
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Foggy
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by Foggy » Tue Aug 21, 2018 6:56 pm
They usually ask for the whole windfall and refund the surplus. This is partly due to the fact that the final figure, being calculated on a daily basis will not be known until the last day, after creditors claims have all been finalised.

The total to settle the IVA on a debt of £11k would be around £14k plus possible statutory interest at 8% simple p.a, calculated daily on the reducing balance. Say currently £880. So, being generous the total required would be £15k less whatever you have paid so far. You could suggest to the IP that they have £15k and refund the surplus from that.
gaynor
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by gaynor » Tue Aug 21, 2018 7:33 pm
Foggy wrote:
They usually ask for the whole windfall and refund the surplus. This is partly due to the fact that the final figure, being calculated on a daily basis will not be known until the last day, after creditors claims have all been finalised.

The total to settle the IVA on a debt of £11k would be around £14k plus possible statutory interest at 8% simple p.a, calculated daily on the reducing balance. Say currently £880. So, being generous the total required would be £15k less whatever you have paid so far. You could suggest to the IP that they have £15k and refund the surplus from that.

:D thankyou for you speedy reply. Do you think if I do receive this payment I should write to my IP offering the 15k as I’m reluctant to hand over £35k which I’ve akready waited 6 years for.
Once again thank you for your speedy response x
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Foggy
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by Foggy » Tue Aug 21, 2018 7:51 pm
I would try the line that you MAY be getting this payment ... don't say how much. Tell him that you think that £15k would cover the full amount outstanding --- and if he feels otherwise could he give you a rough figure.
gaynor
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by gaynor » Tue Aug 21, 2018 7:55 pm
Foggy wrote:
I would try the line that you MAY be getting this payment ... don't say how much. Tell him that you think that £15k would cover the full amount outstanding --- and if he feels otherwise could he give you a rough figure.


Thank you so much. I will contact my IP once I’m certain I am going to receive the payment and will do as you suggest. You have been most helpful and your advice is very much appreciated x
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Lisa Thomas
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by Lisa Thomas » Wed Aug 22, 2018 8:43 am
Speak to your IP but as Foggy suggests be prepared to pay over the full sum and wait for the surplus to be paid back once your IP has finalised the IVA.
gaynor
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by gaynor » Wed Aug 22, 2018 9:19 am
Lisa Thomas wrote:
Speak to your IP but as Foggy suggests be prepared to pay over the full sum and wait for the surplus to be paid back once your IP has finalised the IVA.


Thank you Lisa, if I do receive a payment I’m hoping my IP is understanding and accepts an amount that is surplus to debt and fees without taking full amount as this seems quite excessive. My terms and conditions on windfalls simply states that if I receive a windfall I will be liable to pay all of original debt plus fees plus £600 for creditors meeting. So hoping that I won’t have to hand over my whole windfall and have to wait months to get surplus ( which could be £20k!) back. Thank you for your help x
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Lisa Thomas
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by Lisa Thomas » Wed Aug 22, 2018 12:09 pm
I don't see why you would be required to pay £600 for a creditors meeting if a windfall is received - a meeting would not be necessary as far as I am aware...
gaynor
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by gaynor » Wed Aug 22, 2018 12:22 pm
Lisa Thomas wrote:
I don't see why you would be required to pay £600 for a creditors meeting if a windfall is received - a meeting would not be necessary as far as I am aware...


I think maybe I’m being thick as all the jargon can be hard to understand but it says fees of £600 to be paid should a variation meeting be needed. As I would be offering to pay off whole debt do I assume variation meeting not required? I don’t really understand the process of offering a full settlement.
Wish all IPs were as informative and understanduing as yourself.
Thanks Lisa
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Lisa Thomas
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by Lisa Thomas » Wed Aug 22, 2018 12:27 pm
You are not 'offering' to pay the debt off. This is a windfall and is an asset due into the estate. There is no variation so no meeting is needed.

I think perhaps you are confusing a windfall with a settlement offer.
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Foggy
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by Foggy » Wed Aug 22, 2018 12:49 pm
As Lisa says, there would be no meeting required. The terms of the windfall agreement are already bound within the existing agreement. There is no variation to consider.
gaynor
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by gaynor » Wed Aug 22, 2018 4:53 pm
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