Can i use my inheritance money to pay off mortgage while in iva?

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karen955
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by karen955 » Thu Jul 27, 2017 7:55 pm
Hello I have an iva which will last for another three years it will be finished when I am sixty one. The original amount was fifteen thousand my iva is three thousand seven hundred left to pay. The reason I'm asking is that my mother has left me in her will twenty thousand I think maybe a bit less after all the funeral costs.
Can I pay my mortgage off with this money as I won't be able to get s mortgage as I'm now disabled and can't work after accident at work which is mainly the reason why I got in debt. Can this money be put in an account for me to use it or will iva take it? I don't get much money just industrial injury. Since the government changed I do not get disability allowance either. I need money to live on can this be used to pay off mortgage so I have somewhere to live. its been a very hard three years so far and just getting so worked up about this.
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Foggy
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by Foggy » Thu Jul 27, 2017 8:12 pm
During an IVA you always owe the full original debt, plus fees and statutory interest. The IP will take whatever sum from the inheritance to meet this amount. It is possible to ask the IP to propose a variation to exclude the interest element, or it might already be excluded, which would reduce the amount taken.
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Michael Peoples
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by Michael Peoples » Fri Jul 28, 2017 8:09 am
The money will likely be captured within the IVA and you normally have an obligation to inform your IP of any such windfall. Creditors may accept this as full and final as your payments seem quite low and you have other reasons so that may be the best you could hope for. You could ask creditors to allow you to retain some of the funds and your IP can call a variation.
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Lisa Thomas
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by Lisa Thomas » Fri Jul 28, 2017 10:52 am
I'm sorry to say that the windfall will almost definately have to be paid over into the IVA unless and until the balance of the debt, statutory interest and costs have been paid in full. Only then would you receive anything back.

You could propose a full and final settlement to creditors from the windfall but I can't see why they would be willing to accept this when they are likely entitled to all of it.


quick video here on the same subject:

https://www.youtube.com/edit?o=U&video_id=L8M98FI5OqQ
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