Dear Sir and fellow Expert Members,
Hope you can help me.
My voluntary IVA was started in November 2017, fully settled, and paid in December 2020, awaiting the IVA discharge certificate within the end of May 2021.
My circumstances have changed due to the covid pandemic, Sadly my father passed away so I am getting some inherited cash gift which is with my Mom now, I want to buy my first property, therefore Mom offers me cash to buy outright property in an affordable area without a mortgage (believe it's hard to get Mortgage till November 2023-6yrs time-bound).
But When I was reading my signed IVA initial agreement there's a clause called the "Windfall clause" this triggered my mind. The wording is not that clear but understands that anything I get for e.g lottery but not sure about parent's gifts/cash will go to IVA Trust if they transfer to me. Is this correct or it does only affects any PPI claims only? My situation has been changed but why can't I buy property in my own name without a mortgage. Due to my Mom's health condition, I will like to be in charge of my family. I was not sure what type of hard clause is this which has put me on a massive problem! Does anybody know about this clause? how this is going to affect me if I buy a property in my name. Please advise or Do I need to seek legal advice from the solicitor to safeguard from this clause? Or I can ignore it and move forward as already certificate of the completion is going to be soon issued.
Looking forward to getting some kind of advice.
Thank you all in advance.
Was / is this inheritance in your name ? Or, is your mum the actual benefactor ?
If she is the benefactor, then the IVA has no claim on the inheritance at all. By the time she decides to give you anything or buy a house for you, the completion certificate will have been issued and the IVA will, again, have no claim.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Dear Foggy,
Thank you for your reply.
The entire beneficiaries from inherited estates from My father is only my Mum.She's offering me a cash gift now to buy a property.
I do agree that once I received my IVA discharge certificate there shouldn't be any further issue to own my assets. I am only worried that this windfall clause may be tied up to six years. Hope this isn't true and I am free to have my asset in my name (with title deeds).
Please advise that there isn't an issue further after discharged of the certificate.
The windfall clause only operates on windfalls that existed before the date the completion certificate is issued --- PPI you mentioned in your first post is a different issue and is not a windfall.
If your mother buys you a house after formal completion it will not be affected by the IVA. You do not need to inform your IP and I doubt they would ever know about it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014