Delayed Inherited money going into cancelled IVA! Can i challenge this?

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andrew286
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by andrew286 » Mon Oct 09, 2017 3:24 pm
I have recently come into a small inheritance through the laws of intestacy. This came about over a year after the deceased passed away but due to no contact with my family it took them all that time to trace me. I had an IVA agreement cancelled in June this year and only came in to this money in September. However as the estate was originally due whilst I was under the IVA I have now been told I am not entitled to the money and that it is all going to the IP. How can this be fair? I am now negotiating with debt collectors who have bought my debts from my creditors so I don't see how the IP can be in a position to fairly distribute this money. One of the reasons for cancelling the IVA was that all my first years payments were swallowed up in fees.
Can I appeal this decision? It seems that the solicitors dealing with the estate have just caved into the IPs demands.
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luluj
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by luluj » Mon Oct 09, 2017 3:33 pm
I am afraid that any inheritance that becomes due during the term if an iva is deemed to be payable into your iva for the benefit of your creditors. Therefore I believe the advice received is correct however unfair this may seem
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Foggy
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by Foggy » Mon Oct 09, 2017 4:51 pm
I agree with Luluj. Your solicitor has no choice as he has to follow regulations and law. It is not a question of "caving in".
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kallis3
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by kallis3 » Mon Oct 09, 2017 4:55 pm
I agree - I'm afraid you will have to have to abide by the rules.
FormerlyST1100
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by FormerlyST1100 » Tue Oct 10, 2017 6:50 am
andrew286 wrote:
One of the reasons for cancelling the IVA was that all my first years payments were swallowed up in fees.
Can I appeal this decision? It seems that the solicitors dealing with the estate have just caved into the IPs demands.


This is completely normal in an IVA and is agreed between the IVA compamy and your creditors.
With mine the repayments was not high and it was between 12 and 18 months before my creditors got a penny from my IVA ... if that was OK by them then it was OK by me too.
They got the PPI money I claimed back myself for which I already knew they would be and also got the proceeds of a matured insurance policy which I had completely forgotton about.

All in all, even with these payments, after 5 year I was clear of debt and able to rebuild my credit rating which is now, after 2 year, excellent with Equifax and good with Call Credit.

I hope your decision to cancel your IVA was based on more than just the fact that your creditors were not getting anything in the first year, they already knew that and that was what they agreed to.
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size5
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by size5 » Tue Oct 10, 2017 11:45 am
I wonder what made you cancel the IVA? The deal is agreed at the start, all parties are aware, so I can see little point in cancelling because of the fees. I do hope that you were not mis-informed, either by other, less reliable and more ignorant, forums, or a debt settlement or debt management company.

Either way, the deed is done and I am afraid that the inheritance belongs to the IVA, and by definition, your creditors. I suspect you would have used it, or part of it, to try and clear the debts anyway.

Regards.
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