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Advice re bankrupt receiving injury compensation payment
Rainbow_Butterfly
Posts: 473 Forumite
I am currently 18 months into an IVA of debts accumulated from before I met my husband or had kids. I am a full time mum at the moment and my only income is child tax/benefit. We are struggling as a family to afford to keep paying for the IVA out of my husbands wages (it is soley in my name) and I would like to go bankrupt.
I currently have a personal injury claim going through against a previous employer which is due to conclude in 3/4 months time. I have been told the payment is likely to be around 2k.
It is my understanding that whilst in an IVA I would need to pay over half of this to my creditors, is that correct? If I were to apply for bankruptcy now, would the whole of this amount need to be paid towards the bankruptcy? I assume that if I were to recieve the money, and then apply to go bankrupt a couple of months later then a lot of questions would be asked about where it had gone.
I need to pay off as much of my husbands credit cards etc with this payment and try to get the family back on an even keel as we are sinking at the minute because of my IVA.
Thanks for your advice in advance.
I currently have a personal injury claim going through against a previous employer which is due to conclude in 3/4 months time. I have been told the payment is likely to be around 2k.
It is my understanding that whilst in an IVA I would need to pay over half of this to my creditors, is that correct? If I were to apply for bankruptcy now, would the whole of this amount need to be paid towards the bankruptcy? I assume that if I were to recieve the money, and then apply to go bankrupt a couple of months later then a lot of questions would be asked about where it had gone.
I need to pay off as much of my husbands credit cards etc with this payment and try to get the family back on an even keel as we are sinking at the minute because of my IVA.
Thanks for your advice in advance.
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Comments
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Hi,
Not sure about IVA, but with banruptcy any personal injury claims depends on how the amount is made up. Compensation for bodily damage is normally yours, whilst the OR would take any loss of earnings.
HTH0 -
Any money I would receive would be purely for the injury to my arm as far as I am aware, there is none due for loss or earnings or anything similar.0
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Based on what you have written, whoever advised you 18 months ago should not of recommended an IVA.
I have dealt with cases similar to yours. Any funds for your personal pain and suffering are yours to keep. Bankruptcy cannot touch these.0
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