Inheritance, IVA and solicitors

paulhf_2

Hi all,

Firstly, may thanks to everyone for the replies and advice, I should have perhaps said we wanted the IVA fully settled as we both want to emmigrate, and a clear credit history helps matters considerably!

Bit of an update on the situation -we contacted the solicitors this morning and they said that IP had contacted them (the solicitors) to request the monies be passed directly to him, the solicitors then sent out the letter requesting the signature. I'm smelling a rat as the IP has earlier advised us he didnt know how the solicitors knew about her IVA, and clearly he has contacted them himself. The solicitors have since advised her NOT to sign anything.

We think the IP has been a bit underhanded here - not just because of the denial outlined above, but he suggested to my fiancee when questioned a couple of weeks ago that the solictor hinited "that there's not a lot there" - we found out the truth today. There is a lot there. Her IVA (full debt plus interest minus payments) is around £34,000 including interest and there is nearly 2.5 times that amount in the inheritance.

I can think of no good reason why the IP has requested it all (am I missing something here?) - except to say to his boss he has around a hell of a lot (after the IVA is settled) sitting in the company bank gaining interest, and not my fiancee's account.

We're considering our next move - specifcically with regards to making a formal complaint to a financial watchdog (would we have a case?) - suffice to say the full amount wont be going to him except for full and final balance of the IVA.

skintflint103

In which case you will have to pay the full ammount of debts plus 8% costs. If you were to fail the IVA then they are out of the loop you can then settle with creditors yourself for an amount to be negotiated or do a full and final IVA with another company. Your IVA will fail after 3 months missed payments then the agreemen will be null and void enabling you to deal with this with your solicitors. As I said you need to fight or just roll over. IPs underhand!? goodness no!

paulhf_2

Hi again! Thanks for the advice skintflint, Ill put it to my fiancee and our IVA.

Further update today, my fiancee phoned the IP and his tone was quite confrontational. He said he had sent a letter to the solictiors on Friday requesting that they release 25k to her now. We then spoke to an independent financial advisor who said it should be more like 40k (with the remainder left with the solictors to cover the IVA).

The IP responded by saying he was writing to creditors to request a smaller interest rate fee, and that "Im doing you a favour here" by doing that (correct me if Im wrong but that's part of his job isnt it - maintaining a healthy balance between creditor and debtor?). We think he's trying to squeeze as much out of her inheritance as possible (he's also said he's we owe him a dividend of 5p in every pound - but I am reciting this in the third person so this might not be completely correct - Ill confirm once I get home!)

I suggested to my fiancee that she takes the entire lot from the solicitors now and sticks it in a savings account (where SHE can accrue interest) until she gets a final settlement balance from the IP. Then pass the breakdown to our independent financial advisor to go over it with a fine toothcomb, once its been vetted then she can transfer the relevant IVA amount over.

Should we not go down skintflint's route - does that idea sound feasible?

Charco_2

If you fail the IVA now, the IP already knows there is value to be had and will pursue Bankruptcy... this could prove very costly - so personally I wouldn't go down Skintflints route but by all means look into it if you wish. (i'll have a wee chat about it myself with someone and might come back with more to offer)

Skint is however correct that to settle the debts you would have to pay the full outstanding amount of the debt, not the just the amount outstanding in the IVA (plus a statutory flat 8% interest rate).

I would also agree with Skint that I don't particulary like the sound of your IP (in the terms you have described him here) but there are two sides to every story blah blah blah... Dont forget, all you actually know is that SOMEONE is lying, it could still be the solicitor!

Regardless, all you really need to know is how to stick up for yourself between it all (your rights and your duties, and the pros and cons). I still think the money should come to you and it's up to you to pay your IVA... or clear off to Australia! Your solicitor has no duty to your IP!

Choo_Choo_4

To be honest Paul (in answer to your question) - I wouldn't be in favour of failing the IVA because the IP knows that there is a reason to pursue bankruptcy and would do ... you wouldn't have the option of a F&F IVA with another company - it would never get to that stage.

I think you already know what you want to do (you've already said a number of times that it is not your intention to swindle anyone out of anything - your main worry seemed to be the rather odd way in which this has been handled)

Firstly - you need to get your girlfriend to speak to the solicitor and sort out her inheritance with him. It is HER inheritance and they CANNOT deal directly with the IP nor should they (Data Protection wouldn't allow it anyway)

If she likes. she could get in contact with IP (in writing/email if she wishes just to cover her own back) to say that she is finalising the inheritance and once settled she will be in touch to settle the IVA and get IP to get the final balance in order ...

From the PROFIT of her inheritance (obviously there will be solicitor fees / inheritance tax etc) THEN she can settle the IVA

Hopefully given the fact that you're saying she is due to receive 2.5 times her total debts she should still have something left at the end of it all ...


I'm sure she'd rather still have her grandparents around over the inheritance but the one consolation is that they have/will help her massively with her debt situation and you should be able to get the emigration plans brought forward

paulhf_2

Choo_Choo wrote: »

To be honest Paul (in answer to your question) - I wouldn't be in favour of failing the IVA because the IP knows that there is a reason to pursue bankruptcy and would do ... you wouldn't have the option of a F&F IVA with another company - it would never get to that stage.

I think you already know what you want to do (you've already said a number of times that it is not your intention to swindle anyone out of anything - your main worry seemed to be the rather odd way in which this has been handled)

Firstly - you need to get your girlfriend to speak to the solicitor and sort out her inheritance with him. It is HER inheritance and they CANNOT deal directly with the IP nor should they (Data Protection wouldn't allow it anyway)

If she likes. she could get in contact with IP (in writing/email if she wishes just to cover her own back) to say that she is finalising the inheritance and once settled she will be in touch to settle the IVA and get IP to get the final balance in order ...

From the PROFIT of her inheritance (obviously there will be solicitor fees / inheritance tax etc) THEN she can settle the IVA

Hopefully given the fact that you're saying she is due to receive 2.5 times her total debts she should still have something left at the end of it all ...


I'm sure she'd rather still have her grandparents around over the inheritance but the one consolation is that they have/will help her massively with her debt situation and you should be able to get the emigration plans brought forward

Hi Choo-choo, thank you very much for the helpful reply.

A quick update - we sent a letter on 25/02/10 politely requesting that the full amount be released immediately, and that my fiancee will settle the IVA in full herself with the IP.

To date (Saturday 06/03) following one letter to the solicitor (date above), and four phone calls, we have had no response or telephone call from the solicitor whatsover. We suspect we may have to resort to legal means to force them to release her funds which is an extremely sorry state of affairs... I can honestly say that never have either of us been treated with such disrespect. The sad fact of the matter is my fiancee cannot afford to pay for her car to get through its MOT - yet these peope have 80k+ of hers sat in their accounts. We suspect that the solicitor is being evasive, and also trying to settle the IVA on her behalf (which she has NOT given her permission for) in order to:

a) keep the funds in the solicitors account untl the IVA is settled
b) bill her for the "privelige" of settling the IVA

We not only find this evasive behaviour to be extremely rude, but also a little disturbing.

Does anyone have any suggestions?

My plan was to call the legal complaints service, but then again my plan is probably not the best!

I'd be most grateful for your input!

Many thanks!