IVA and windfall before the creditors meeting.

adge666

I've been going through the IVA application process for some time. I expect that there will be a creditors meeting in the new year. I'm aware of the windfall clause when the IVA starts. However today my Mother-in-law died suddenly and I'm aware of a small inheritance that is likely to come our way.

I guess I will inform the Insolvency Practitioner but since the agreement hasn't been drafted and signed yet, what are our obligations (other than moral) if we receive the inheritance beforehand?

Many thanks

Charco_2

Who is entering the IVA? Is it Joint with you and your wife?

adge666

Who is entering the IVA? Is it Joint with you and your wife?

Yes, a joint application.

Charco_2

You do have to be honest with your IP about the windfall and that you are expecting it, however...

How much are your debts for?
How much of a windfall?

nickybutch

Hi
In reply to the thread about windfalls.

The IVA clause is that YOU keep £ 500 of the money and the rest goes into your IVA.
It is the same if you get a loan, under Bankruptcy.
You are only allowed with your IP's permission to get a loan of ONLY up to £ 500.

I know it is bad news to you. But this is the fact.

I had a PPI rebate of £ 2020.01 in October 2009.
I got £ 500 as a windfall but the rest got put into my IVA.
It was in my IVA clause, there is nothing you can do about it.

Nickybutch

debtinfo

Each IVA will be different as it is individually negotiated, but you would expect to lose a large chunk if not all of it.

Loans in bankruptcy are not as described as above, a bankrupt can actually lend as much as they want without permission from he OR as long as the lender knows they are bankrupt (not advisable though)