We got the IVA approved on tuesday and we were chuffed to bits.
We didn't wait until next month to make the first payment, we paid it right away.
I have been checking the bank every evening before going to bed and in the morning again. Last night there was a huge lodgement and i could not work out what it was. So i woke hubby and we worked out it must be the tax credit we were owed from last year.
As hubby is self employed we give estimates to tax credits and then at the end of the year as soon as his books are in and the accountant gives us the figures we pass them on. We always try and over estimate so that we are not over paid. Usually it is only a small difference.
So hubby finally got the figures last week and called them through and because of hubby having such a disastrous year last year (one of the reasons we are in the iva) we got £1018 back.
Now we presumed that we would have to pay some of it to creditors and thought 50%.
So first thing, being the honest people we are, less than 8 hrs after discovering it we contacted IP to be told we have to hand over the whole thing. It is looked upon as a windfall even though it is from last year.
I cannot see how this is right or fair but we have asked again and we have now had to pay it all over. Not only that we have been asked to send in docs to show that it was the full amount. As if we are going to tell them lies when we told them immediately.
I am devastated by this. Really and truly i feel this is unfair.
I'm sorry that you've had to pay it over, but I think the view is that if you'd had the money last year it should have been available to the creditors then.
I know that's no consolation though, and I would have felt exactly the same in your shoes.
I too believe that it is a windfall because as you say one of the reasons for the IVA was your husband's bad year. Therefore creditors made up the shortfall from your husband's self employed earnings so now that this rebate has been received it is only fair to give it back to them.
Had you received this money before the IVA it is possible it would have kept the wolf from the door for a while but inevitably you would have had to enter an IVA at some stage.
It may seem harsh but it is not the rules of the IP but the terms and conditions of the IVA.
Many people have never missed payments but have been living on credit. Only once you sit dowen and add up the minimum payments you are making do you realise that your debts are actually increasing monthly.
I mentioned before that I had two clients who owed in the region of £160,000 and had never missed a payment. their minimum payments were over £3,000 per month but their actual surplus was £800. effectively their debts were increasing by over £2,000 every month and they saw no benefit of this.
This is an extreme case but most clients do find themselves in a debt spiral and eventually something has to give.
If you knew about the claim prior to the IVA being presented to creditors, this sum should have been included as an asset in any case, so I can see why your IP is deeming this to be a windfall.
Did you tell them about this claim when providing them with the original documentation for them to verify your financial position?
Oh I really do feel for you New Start. I can absolutely imagine how you must feel but I guess, judging by the professional's comments, you're going to have find a way to take a deep breath, count to ten (or more probably) and just accept it. Easier said than done I know and not at all what you want to hear.
Not at all - but maybe we are wondering why you are upset?
If you hadn't anticipated the money being as much as it was, this was an unexpected windfall - but you have titled your post "So angry and upset". We all want to share in that with you and try to help - and I don't feel that anyone has accused you of doing something wrong.
Hi
I do feel for you and understand the high and lows that you have felt.
Try to console yourself with the thought that you were not expecting it and that you have made an excellent start to your IVA.
Keep posting
Regards
