New here IVA advice please!

dimples_2

Hi there
After many years of burying our heads in the sand, my hubby and I decided to confront our debt, had counselling then we were referred to an insolvancy specialist who gave us two options an IVA or Bankcruptcy, we chose the IVA as we feel it is our obligation to pay back some of our debt even though we cannot afford to pay it all back even though bankcruptcy would have been an easier route, as we have no assets to lose and I'm a full time carer for our disabled child and don't work.
C'est La Vie decision was made and we are now into our third month only another 57 to go!!!
At the time of applying we were told my hubby had to freeze his company pension and start paying his contributions to the IVA instead, he wasn't happy about this but duly did as advised, only to find that his pension wasn't able to freeze, but instead had to be surrendered, he's lost the company contributions, but has been offered his contributions back it's a good few hundred quid, he feels strongly that he should be entitled to keep the money and save it so that at the end of the IVA he can re-invest some of the money toward a new pension and use some to put toward a special needs car seat for our daughter who badly needs one(they are £400-£500). I agree with him on this but don't know how the IVA company will see it, do you think they'll see this money as a "windfall" and expect him to pay it into the IVA?
They already take a huge amount of our incomings including my daughters care allowance they see it as an income, which I think is really unfair as we need extra money from time to time to buy special equipment for her.

I don't know what to do, do I call and ask the company and so then risk them saying "thanks very much we'll have the cash" or do I stay quiet and let the money clear then use it as we need to?
I know they check payslips, P60's etc yearly but do they also go through bank statements for the year?
We don't want to end up in a whole heap of trouble and be made bankcrupt after getting ourselves on an even keel now.

Any advice gratefully received!

sgx.saint

Hmmm complicated one.

I can only offer my advice .... I think that morally I agree with the scenario where you keep the money as said. Especially if the money could be used to pay for equipment for your daughter and so forth.

Technically though, you do have to report all "additional" income to your IP and if you dont and the IP finds out, he will notify the credtiors and further action may result in the creditors rendering your IVA invalid and as a result you could be made bankrupt etc.

So its a tough one, but I think it would be best to declare it to the IP. Perhaps you could negotiate with him or her regarding the money? Actually I seem to remember that in most cases "additional" income was split down the middle i.e. you keep 50% and the creditors take 50%. But I am not sure if that was specifically related to wages or was for all income.

Hope this is of some help.

lynzpower

Just to say welcome :wave:

If you need a child seat for youre child who has special needs approach your local social services department and ask for another assessment under S17 for the cash. Having worked in Social services, I can tell you that this sort of payment is "bread and butter" and you should get this witohut using this pension money.

Good luck

james32_uk

Maybe you can not claim your money from the pension until the IVA is finished?