Pain and Suffering compensation payout %100 how will it affect my IVA

SartyMarkll

31.9.11 Vesting or non-vesting asset?
I found this reference and its great advice.

I have recieved 6k for pain and suffering from the Armed Forces Compensation Scheme so no loss of earnings and am in an IVA does the legislation apply in the same way for an IVA?

Not trying to dodge my debt at all but need to replace the family car and make some house repairs and this will be the only chance i get until the IVA is complete in 4 years.

Charco_2

Yes, I think I would be exempt. If the payout was for loss of earnings you would have to pay it towards your IVA but for pain and suffering you dont.

Basically, you wouldn't be expected to pay it in in Bankruptcy so you shouldn't have to in an IVA

althas

Talk to your IP to clarify, it could be classed as a "windfall" as it is unexpected income / money

I think the most useful thing in an IVA is not to presume anything. It would be awful if you got to your next review or the end and they land an extra bill on you for this

But please let us know what your IP says, will be good to update "our knowledge"

SartyMarkll

Spoke with the IP this morning and she has said the clause in the IVA paperwork states she would ask for 50% of the payout. However, if i wish to retain anymore than 50% to put a case to her for her to consider.

Will try and ask to apply the same rule as bankruptcy but dont hold out much hope.

Both cars failed MOT's this year and Mates Rates (friend who is a mechanic) got them through at a cost of nearly £900 which family helped pay for and is outstanding to them. IP has said she can deduct this as i went that route rather than miss several payments and risk the IVA failing.

Makes sense to put 3-4k towards cost of 2 newer and more reliable cars, pay back family and give the remainder to IP as good will but keep both me and partner motoring and in employment(no car no job, IVA fails not an option) hopefully trouble free for a few more years.

Will keep you posted and let you know the outcome.

Charco_2

Could be way off track here, is Melanie Giles your IP?

Edit:

Actually thinking about it, I would be surprised if it was her, she is a very good IP and this seems to me to be wrong advice. It actually makes no sense!

Pain and suffering payments are exempt, it really is as simple as that!

The rule concerning 50% payments of extra income applies to bonus, commission, overtime or similar - categories which this payment certainly does not fall into.

The rule regarding windfall is even simpler if your windfall is greater than £500 then you must pay the FULL AMOUNT into your IVA.

I ran this scenario by a few of my colleagues there now and we can see no justification for your IP to ask for 50% of this money... Your IP should ask for either ALL or NONE of your compensation and since it is actually exempt then your IP is entitled to NONE of this money...

Contact your IP again and ask for an explanation and some justification.

If you still doubt what I am telling you is true, then post the same question onto this site

iva . co . uk (obviously remove the spaces)

and i'm sure you'll find that the answer is the same!

Good luck!

SartyMarkll

Charco

This is great if i can prove it would like the legislation if you can tell me where to get it so i can quote to the IP. As this will put me in a stronger position to argue the case with her. Melanie is not my IP and to date IP has been very good/fair i think.

If i can show IP in writing that pain and suffering are exempt would fell much more confident arguing the case.

Thanks for your help so far

Sarty

SartyMarkll

Melanie Giles says there is no hard and fast rule on this type of thing and suggested i get a lawyer to look over the paperwork.

Drafted a long email to IP last night arguing that i am allowed to keep the full payout after clearing money owed to family, so will send now and see what response i get.

Worst case scenariio i come away with £2400 which is not ideal but better than nothing

Watch this space

althas

Good luck then SartyMark hope you get the outcome you want

BTW Melanie Giles is my IP and I would trust her advice 100%

Charco_2

Just read your thread on that other forum, while I do rate Melanie as an IP, I disagree with her a little in this instance... at least she does agree that it is worth checking into though!

If you were in an IVA with the company I work for there would be no question about it , Pain and Suffering is exempt and we do take that line straight from Bankruptcy proceedure - even if she says you can't compare the two!

So check your paperwork now then and see what guidelines it lays down.

Remember, this is NOT a windfall - if it was your IP would be entitled to claim 100%
Remember this is definitely not a bonus, commission, overtime or other payment - 50% makes NO SENSE AT ALL!

(PS - love your Hobbes Avatar o that other site!)

SartyMarkll

Thanks Charco watch this space