Early completion of an IVA

Ashler

Hi All,

I am currently 18 months into an IVA and am about to receive an inheritance from the estate of my Grandfather, who passed away last July. The inheritance isn't large, and it only covers around 60% of the original debt that got me into the IVA in the first place, but a friend has suggested that I could offer a final settlement figure to my Supervisor for consideration by my creditors and they may agree to complete the IVA early.

Has anyone had any experience of doing this? Is it possible? I have toyed with the idea of just paying a percentage of the inheritance as would be required by the "windfall clause" in my IVA and continuing the IVA to completion, but the idea of a clean slate and a fresh start, even if I am starting with nothing again, is very tempting. The build up too and arrangement of this IVA, and living with it since, have marked the very worst years of my life, and I would love to put it behind me.

Anyone got any advise on this subject?

Thanks

p.s. I mistakenly posted this in the bankruptcy forum earlier, so apologies if you have seen it twice.

UpToMyNeckInIt

Just my thoughts as I understand it (being in an IVA myself):

Firstly: did you inherit this directly, or did say, your parents inherit the estate, and have decided to gift some to you?

If someone else inherited this money, and gave it to you as a 'gift', then you can keep the lot, as a 'gift' is not a 'windfall'. (This was the advice given by an IP on another IVA forum).

Hovever, I think you might be required to hand it all over if you inherited it directly - as per the 'windfall' clause. Furthermore, your IP/creditors etc. may not agree a F&F, as you still have 3.5 yrs to go, and you remain liable for ALL your debt (plus your IPs fees) until the IVA is concluded.

However. if this windfall was coupled with an adverse change to your financial circumstances: eg: you losing your job etc. then a F&F is more likely to be considered.

sniggings

You can always make the F&F offer but as you say the amount is only 60% of what is owed and I'm guessing the offer will be less than that, and when you consider even without the offer your creditors would be getting a share of the inheritance anyway, an offer is unlikely to be accepted as you will only be offering them their owe money anyway, but as said still make the offer, you may catch them on a good day.