IVA & inheritance

moneymuddles

Hi,
My husband and I took out an IVA over two years ago after getting into difficulty. It has all been going ok, we are one payment ahead, managing our budgets well. My husband was then made redundant. We have carried on making payments but this is being reviewed and we may have to take a break due to such a drop in income. In the meantime he is potentially to be left around £20,000, its is between different relatives and is with the solicitors at present.
My question is given our circumstances would that be able to be used as a full and final? I know it says windfalls etc are to be paid in but would this be possible?
Our IVA was £35k, we have paid £280 a month for 21/2 years.
Thanks

longtermplanner

It wouldn't be a 'full & final' if you creditors are entitled to the money through the windfall clause (which is what would be normal but you need to check what your IVA says.)

However, on those figures and your current circumstance it is likely that your IP would propose to your creditors that your IVA is ended early and marked as completed. So you wouldn't need to make any more payments.

UpToMyNeckInIt

I think LTP makes a good point.

Given your husband's recent redundancy, and you are now on a reduced income, you could do worse than to propose the £20K that you have inherited as a F&F settlement: Assuming you originally had a 5-Year IVA, this £20K plus your existing payments to date, come to way more than the c£17K you were going to repay over the 5-year period.

Based on the above information, I would suggest that such a proposal stands a very reasonable chance of success.

I would just add though, to keep up any monthly repayments until such time as a F&F is agreed.

Best of luck, and let us know how you get on.

moneymuddles

Thankyou, I plan to propose what you both advised, the money is going to be a couple of grand less than I thought but it still would equal more than we would have paid on our 5yr one as our house still had no equity. Fingers crossed and thankyou

longtermplanner

Good luck! Could you report back with what happens?

milliemonster

To be perfectly honest, if your husband is redundant and currently out of work, then I would be looking to keep back from the inheritance the equivalent of 6 months salary and propose the remaining amount as a F&F, your IP should find this more than acceptable in the circumstances and so should your creditors, there i no way you should be expected to put more into the IVA than was originally agreed when your husband is out of work now.

moneymuddles

They agreed!
So so relieved, awaiting PPI as that needs to go in to the payment but we have transferred the money and been sent the variation meeting minutes confirming our creditors have accepted.
Thanks for the advice and support.:j:j

UpToMyNeckInIt

Congratualtions on getting your F&F offer accepted.

Hope you get your lives back on track now that the IVA is behind you.