IVA and inheritance

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Foggy
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by Foggy » Fri Sep 22, 2017 12:33 pm
As said, you can fail the IVA, but this could increase your debt as creditors will add back lost interest and late payment charges, they would also be able to take any enforcement action they deemed apropriate. Assuming they all play ball you could then enter a DMP -- although this is not legally binding and they do not have to comply. A little further down the line they may, or may not, be open to a settlement offer. I am afraid it all depends upon the roll of the dice.
Adam_7985
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by Adam_7985 » Fri Sep 22, 2017 12:34 pm
Thanks for the advice
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Lisa Thomas
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by Lisa Thomas » Fri Sep 22, 2017 1:19 pm
I appreciate it's sensitive in the circumstances but it seems best that the will is changed.
Adam_7985
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by Adam_7985 » Fri Sep 22, 2017 1:46 pm
It is a close family member and I can't bring myself to tell them the mess I've got myself into, especially when they are so unwell
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kallis3
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by kallis3 » Fri Sep 22, 2017 1:53 pm
I'm sorry about your family member. Looks like you are stuck between a rock and a hard place and only you can make a decision as to what you are going to do.
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Lisa Thomas
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by Lisa Thomas » Fri Sep 22, 2017 2:05 pm
I completely understand but how would they feel in thinking they were leaving you such a lovely gift only to find that it went towards paying off your debts in your IVA.

Is there another family member who you could talk to instead perhaps?
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Michael Peoples
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by Michael Peoples » Fri Sep 22, 2017 2:49 pm
This is very sensitive and I can understand your dilemma. However, if the will was changed and your share was allocated to a sibling for example they could use some to offer as a full and final settlement. You would be out of your IVA and the bequest would have left you debt free for the first time in years.

Lisa's idea is a good one so try and speak to another family member and at least some good will come out of this rather than your share being lost. This person wants you to have the money and what a legacy it would be if they left you debt free.
Adam_7985
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by Adam_7985 » Sun Sep 24, 2017 6:08 pm
Sorry final question, if I got the person to change his will so my inheritance would not go to bankruptcy, would it be held till I was solvent again in 5 years, what happens to the money?
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Foggy
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by Foggy » Sun Sep 24, 2017 6:40 pm
Adam_7985 wrote:
Sorry final question, if I got the person to change his will so my inheritance would not go to bankruptcy, would it be held till I was solvent again in 5 years, what happens to the money?



You would need to get legal advice. Some insolvency clauses will act to simply disinherit an insolvent beneficiary and the monies would be shared with the other beneficiaries, or as detailed in the will itself. Or the clause could seek to hold the money in trust until the beneficiary is once again solvent. Now ... such a clause can be over-ridden in bankruptcy with the official receiver stepping into the shoes of the beneficiary and getting the money .... whether the IP has the same reach I do not know. Do you have a sibling the money could be left to instead of you? If so, he or she could then give you the money after the IVA has concluded ( or use some of it as a full and final offer to end the IVA early ). Obviously this will require a degree of trust as such an arrangement cannot be agreed in law or enforced.
Adam_7985
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by Adam_7985 » Sun Sep 24, 2017 6:52 pm
Thank you, I think that would be the best option, I hate having to tell anyone about this but I may have no choice
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Lisa Thomas
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by Lisa Thomas » Mon Sep 25, 2017 9:42 am
If the will is changed it will go to someone else - as Michael says you could have an agreement with them behind the scenes that they will gift the money to your IVA as part of a full and final settlement but you would need to be able to trust the new beneficiary as legally I suspect the money will be theirs under the will.
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