Settling my sisters IVA

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chris467

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Post by chris467 » Fri Jan 10, 2020 10:28 pm
My sister has asked me to gift her some money to settle her IVA early as she really is struggling on her own with young children.
I really don’t mind this as I would love to see her happy and able to move forward. I just want to check the implications for me as she has asked me for Photo ID, a utility bill and proof I have the money in my account. Many thanks

luluj

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Post by luluj » Sat Jan 11, 2020 6:48 am
Yes that is normal. The iva company will want to see where the money us coming from and that it is not part of any money laundering exercise.

I would personally write a letter explaining that he money is only being offered as a full and final offer for the iva to conclude and should the offer be rejected by creditors then the money will not be available for any other use. This then shows your sister is not receiving a gift of money which would have to all be put into the pot for creditors.
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Foggy

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Post by Foggy » Sat Jan 11, 2020 10:28 am
As Luluj says, the ID and proof of source is to do with standard anti-money laundering practice and will have no comeback.

Luluj's advice about declaring that the money is only for the purposes of a F&F and the donor will retain it if the offer is rejected is definitely worth following as well.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
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Lisa Thomas

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Post by Lisa Thomas » Mon Jan 13, 2020 9:31 am
Worst implication is that you cannot legally pursue her for repayment as the monies are to be classed as a gift, which I assume will not be an issue...
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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