IVA & Compensation for Pain & Suffering

lisal0u

Hi,

I asked this question quite a while ago but I have now had a settlement and received my cheque.

I have been honest and spoken to my IP who say the full amount needs to be paid into my IVA, unless there is something I need to keep it for then I can write in and it will be considered.

I would be happy to do this if the my paperwork was crystal clear about what I should and should not pay into my IVA but its vague. Ive also read on many forums that people have been allowed to keep compensation for pain and suffereing.

I see this question has been asked many times on many forums and it seems to me there should be a clear cut answer. It should be the same rule for all!

I don't know who to speak to as a solicitor will probably cost me all my compensation and my IP isnt been helpful.

Any advice on where I can go from here would be really helpful.

Thanks
Lisa

nomoneytoday

Had you not been in the IVA, then presumably some of the settlement proceeds would go towards the debts?

lisal0u

I just would like to know one way or another if pain and suffering should be included.

I'm happy to hand the money over if it is but there is nothing clear cut to say that.

Its not acceptable that one person in an IVA can keep it and another cannot. Surely it should be the same rule for all. In bankruptcy any money for pain and suffering cannot be claimed.

Its very fustrating that there are no clear cut guidelines and no one to discuss it with.

ILW

Bear in mind that your creditors are in the agreement voluntarily, and may pull out if they think you are keeping the cash whilst not paying your debts to them.

FoggyBrain_2

ILW, the creditors are bound by the IVA and cannot pull out. If the IP coinsiders the compensation is allowed to be retained they are also bound by that decision. As said above, some IP;s consider that comnpensation for pain and suffering can be retained, whilst other classes of compensation will have to be paid across.

As with many IVA clauses where it is left to IP discretion, some do ... some don't !!

lisal0u

My paperwork is very vague and I should have got it clarified in hindsight but at the time I never even thought Id be making a compensation claim. The wording is as follows:

Windfalls: Examples of these include all types of redundancy payments, any inheritance, and any betting or lottery winnings. There are other examples not on this list so please contact my team if you require further information.

By saying that it seems they can say whatever they like. Just spoken to the Insolvency Service and they advised that I would need to take legal advice on the wording of my paperwork. Not really any point in that as the cost of a solicitor would probably wipe out the compensation anyway.

Have just also spoken to a very helpful lady at the National Debt Helpline and she has advised me to speak to the Law centre who will be able to advise me. She said as they would not be able to take the compensation in Bankruptcy I may be able to argue the case but it will come down to my paperwork and I will need someone to look over it.

I am also going to get a friend to email CCCS and ask for their list of which assets are classed as windfalls.

If its on the list I will happily hand it over but I strongly believe that if they are genuinely not entitled to it they shouldnt have it.

Sorry for the long email but Im hoping this may be able to help others.

Thanks
Lisa

lisal0u

FoggyBrain wrote: »

ILW, the creditors are bound by the IVA and cannot pull out. If the IP coinsiders the compensation is allowed to be retained they are also bound by that decision. As said above, some IP;s consider that comnpensation for pain and suffering can be retained, whilst other classes of compensation will have to be paid across.

As with many IVA clauses where it is left to IP discretion, some do ... some don't !!

Thank you for your input! This is why I have such an issue, surely it should be the same for everyone taking out an IVA. Everyone that goes bankrupt can keep claims for pain and suffering so why isnt this the same for an IVA.

I realise that just made me sound like a whiney child ha ha but it is extremely fustrating!

lisal0u

After requesting a list of what is considered to be a windfa I got this response:

An IVA is a five or six year commitment, a windfall would be considered to be any money that you get during this time that is not detailed in the original proposal and that you weren’t expecting.

If you are ware that you are going to receive any money during the course of an IVA you would need to make the Insolvency Practitioner aware of this from the start to make sure an IVA is in your best interests.

Money that could come in as a windfall could be anything from inheritance to a lottery win. A windfall is classed as unexpected funds.

I hope this helps.

Haha no it doesn't! Any ideas how a definitive list out of them? Freedom of information request?

FoggyBrain_2

I am afraid there is no definitive list --- its down to discretion.

Which firm are you with ?

lisal0u

I'm with CCCS. Surely if it's down to discretion each IP working at CCCS could have a different opinion?

FoggyBrain_2

I do believe that CCCS only has one IP !