IVA Windfall

ariba Forumite Posts: 1 Newbie
Had an IVA for just over a year now and stuck to the payments, it is getting easier budgeting and the first 12 months do appear to have flown by. Expecting a windfall payment (inheritance) sometime this year and do not want this to disappear into the IVA to pay the original debt figures (I assume the debt reverts to that owed including interest prior to the IVA?), but quite happy to pay the expected/ calculated value of the remainder of the IVA which is still a significant figure.

Just wanting advice on the options open to me, should I request that any inheritance is transferred to another family member who could then make an offer to settle the IVA or if I do accept it how will the IVA company/ creditors know that I have received it?


  • foxy-stoat
    foxy-stoat Forumite Posts: 6,879
    Eighth Anniversary 1,000 Posts Name Dropper
    If your name is on the Will then I doubt you can make the executors pay it to someone else, if you can then happy days. Otherwise you will have to make the IP aware and pay it into the IVA.

    Once you have achieved 100% of the original debt including the fees then your IVA should end. Interest doesn't get added now.

    If you don't tell the IP about your inheritance and they do find out then its very serious fraud you will be committing. Up to you how you proceed.

    Good luck.
  • sourcrates
    sourcrates Forumite, Ambassador Posts: 27,642
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It will be made clear in your initial IVA agreement that you need to keep your IP informed regarding any changes in your financial situation, or if you receive a windfall (check windfall clause).

    At the end of each year, your insolvency practitioner will conduct an evaluation of your finances and so any extra income that you do try to keep hidden will be revealed at this point anyway.

    It’s important that you do keep your IP fully informed as failure to sufficiently inform the relevant parties may well result in termination of the IVA altogether. Not only this but by breaching the terms of your IVA you could be breaking the law and may face penalties from the courts if caught out.

    To settle the arrangement you would need to pay the full amount of outstanding debt, charges, and any IP fee`s that would have become payable during the lifetime of the IVA.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • PrettyKittyKat
    PrettyKittyKat Forumite Posts: 1,270 Forumite
    I'm sorry but it is not the case of 'I don't want to pay all my inheritance in.' You were happy for the creditors write off thousands of pounds of money that you owe them, whilst being legally protected from further action. If you are now in the position to pay back a higher proportion, or possibly all, of your debt then you do... simple.

    This is a legal arrangement and you must comply with the rules just as much as the creditors have to.

    Call your IP and ask what is left to pay to reach 100p in the £. If the inheritance is less then this then it all gets paid in. If it is more than you pay in what you need to and your IVA completes.
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