BR & Windfalls

hughie278

Say i was to come into some money, a Lotto win of £1200 for instance, while i was BR and paying an IPA for three years. Would i have to submit half of that to the OR like in an IVA? Discharged or Undischarged.

tigerfeet2006

If you are undischarged then you have to let the OR know about the windfall and he will have the lot for your creditors. Depending on the wording of your IPA then I have a feeling you have to let them know untill the end of your IPA to.

There seems to have been a change recently as it used to be until you were discharged but a couple of people have had the wording in their IPA so that they must notify the OR untill the 36 months is up.

Richard_S

hughie278 wrote: »

Say i was to come into some money, a Lotto win of £1200 for instance, while i was BR and paying an IPA for three years. Would i have to submit half of that to the OR like in an IVA? Discharged or Undischarged.

Hi hughie,

Do you have any particular windfall in mind?

What you should do and what you can do are clearly two different things.:D

A modest lottery win that you could claim in cash from a Post Office is completely different to being gifted a property in a will.

I think an old addage is relevant here: "tell the truth, but don't always be telling the truth".:rolleyes: :rolleyes:

Richard

hughie278

Haha, ok cheers.
Im not BR yet, but will be soon. Im just trying to find out everything i can.

Richard_S

hughie278 wrote: »

Haha, ok cheers.
Im not BR yet, but will be soon. Im just trying to find out everything i can.

Hi hughie,

Joking apart; if you think you might come into an inheritance then you need to do some serious planning.;)

fermi

If you become entitled to a windfall before you are discharged then yes the OR will claim it.

After discharge if you have an IPA/O it seems that the OR can normally only claim any of it if you use it to replace your normal income (if I'm reading it all right). In other words most windfalls are probably safe as long as it's not an obscene amount and you then give up your job and live off the proceeds/interest.

An IPA/O is an agreement/order on "income" not a windfall tax.

tigerfeet2006

Thanks for explaining that Fermi. at least I was nearly right

gratton20

In an hypothetical case ... if a lotto ticket won, say £1200 then the person who actually went to the shop and handed over the money MIGHT well have been given the £1 to buy the ticket on behalf of and by their partner, for example, and so the OWNER of the winning ticket would actually be the person who provided the money ... and of course since they were not B R then they have no problem - hypotheticaly of course;)

Broken_hearted

Simple if you come into money you owe it to your creditors there is no grey area.

rog2

Broken_hearted wrote: »

Simple if you come into money you owe it to your creditors there is no grey area.

Sorry BH, and I don't wish to start an argument, the whole area of 'windfalls' is coloured with 100 shades of grey - whether you are in a DMP, IVA or Bankruptcy.

fermi

Broken_hearted wrote: »

Simple if you come into money you owe it to your creditors there is no grey area.

Once you are bankrupt the only legal payments that can be made to creditors are the ones through your bankruptcy estate. The OR/Trustee of that estate decides whether windfalls, income or assets form part of that estate according to the primary and secondary insolvency legislation.

It is not the bankrupts decision, nor should it be.

So your above statement is utter twaddle.