IVA windfall ???

kernits

i am in the last year of my iva a family member has offered to lend me the money to pay off last payments of the iva i have told the iva company and they think it will be excepted and have started the ball rolling.
now the problem ! i was divorced 12 years ago my exwife had the house and i had a charge put on it for a % of the house value for when kids left full time education or she had a new partner move in she then has to pay me off and i had to pay the endowments as part of the deal which im still paying my.
My exwife has just said her new partner wants to buy the house so there is no need to keep endowments to pay of the mortgage so she wants to cash in endowments give me the money from them as my pay off which sounds ok but is this classed as a windfall to the IVA company ? also money from that has to pay of my legal fees from the divorce that is also in the charge so i dont know what to do !! ive been told because i have paid the endowments all this time its not a windfall but i dont know tbh help !!!!!

FoggyBrain_2

Hi. Sticky one this. If not viewed as a windfall it could be viewed as an asset. Was there any mention of this in your proposal -- it might have been excluded?

Anyway -- asset or windfall, both are payable into your IVA.

Can sorting this all out not wait until your F&F has been finalised and you have your completion certificate ?

kernits

not put in iva as im still paying endowments as it was in divorece settlement its only mentioned in iva as a outgoing. im hoping f&f will be done befor exwife pays me off she thinks about 8 weeks to sort it through her solicitor.i have tried to find out how its classed windfall etc but cant get an awnswer and dont want to ask ip as i was not excpecting to be paid out for another 5 years so exwife has caught me on the hop

FoggyBrain_2

8 weeks is going to be cutting it fine. Some companies are issuing certificates within weeks -- others are taking up to a year. And, until you have that certificate the IVA is still functional. Although, personally, a full and final should be just that and you should be released from further obligations once it is accepted. However, I don't believe this has yet been tested !!!

kernits

to be honest im shell shocked and confused ! i just cant find out either way if its included or not in iva as windfall is mentioned but does not say what it includes !

gizmo111

I would tell the ex that she has to wait a little longer or you won't agee to cashing the endowments in - or removing the charge.

kernits

i have agreed already and signed the release for endowments she is sorting it out through her solicitor ! part of the money we agreed will go to our daughter who will be going to uni im trying to do right by everyone and i may come out the looser im very worried as this was going to be my pension

FoggyBrain_2

pound to a penny it will be captured by the IVA as either a windfall or asset, more likely an asset --- but what they call it is immaterial.

Does your ex know about the IVA ? Hopefully you can discuss this with her and get her to put the brakes on. Her solicitor isn't a runaway train and can be slowed down.

I am sure that she will understand ... after all, if she steamrollers ahead one of the losers will be your daughter and her uni fund! Surely she won't want that !

debtinfo

The IVA proposal should really have stated what was to happen to the endowments, they should have been declared and discussed at the start because as foggy says they are not really a windfall they are an asset and the IVA cant really be closed out without them being dealt with, whether that be by being excluded, paid in to the IVA or bought out of it

kernits

i told ip all about the endowments at start of iva but because they were not due to payoff mortgage for another 5 years they were outside the lifetime of the iva so as far as i know not included but the payments i make on them are part of my outgoings and thats as much as i know ans getting more worried by the hour !

FoggyBrain_2

Kernits -- thinking outside of the box here and trying to second guess your IP ( not usually a recommended thing to do) ...... He was and is aware of the endowments as are your creditors, as they have both agreed to service the payments within your allowances. I assume they all decided to simply ignore this due to the fact that they were not to be realised during the life of the IVA (very sloppy on the part of your IP to be honest). However, whether technically correct or not, my instinct would be to honour the spirit of the tacit agreement and, as long as the endowments are realised OUTSIDE of the term of the IVA, as was originally envisaged, leave well alone.

So, in essence, you still need the ex to put the brakes on.