Inheritance

Lizzie8379

Hello me and my husband are due to recieve a hefty inheritance. Which we know will have to go to our iva. We have paid in for 2 years our originals debts were £60k 

Now we know we will have to pay back our original debts of the £60k minus any payments we have already made. We are with credit fix but what we can't seem to find out is if we will have to pay interest to the creditors on top of this I know we have to pay our IP fees.. which is fine. But I read we have to pay interest of 8% of the debt to the creditors is this of the total amount is it 8% per year of iva. If that is the case we can kiss our entire inheritance goodbye which my father in law wanted us to build our future for our children. 

Thanks for any advice. 

sourcrates

Yes you will repay the original debts, plus interest, plus IP`s fee`s, all in all, a very costly way to do things.

How much are you expecting to receive ?

Because if its substantial, another way to go is to let the IVA fail, which can take quite a while, and then just settle each individual debt, for a discounted price with which ever collection companies pick up the remains.

Do not mention the inheritance to anyone, least of all the IVA company, let the arrangement fail, make the deals, and hopefully keep some of the cash.

If you don`t, you may stand to lose the lot, and I know its said that if you fail your IVA they could make you bankrupt, you could also win the lotto, in reality, the debts just have collection activity start up again, or get sold, bankruptcy is very unlikely to be the response, as no one gets anything from that.

JCS1

I think executors have to check insolvency register before making any payments, so if they do they may pay the monies over to the IP directly.

sourcrates

JCS1 said:

I think executors have to check insolvency register before making any payments, so if they do they may pay the monies over to the IP directly.

That is very true yes, unless the arrangement has already been officially failed, and the books closed on it.

Timing is everything in this game.

Lizzie8379

Yes the inheritance will go through court very soon and my iva will not be complete or failed within the time so I can't do it that way which is a big worry to us.... So it will be notified and they will just hold our money....we stand at around £100k we will recieve. We did look Into clearing via a family member as a third party but again it might not be cleared in time and they will be able to date back the death to before we decided to clear the money which could land us in serious trouble.  Its a sad situation the only blessing im taking is that atleast we finally be free of the burden of the iva something I guess 

Shelleypt

Sorry to join this thread late in the day but please be aware - YOU are supposed to notify insolvency service when you know you are to get an inheritance not when you get the money its the date of death that counts apparently.

I hadn't realised this until after my DRO ended I am awaiting decision on what happens next.

ikati5

I just inherited while an undischarged bankrupt, which is similar because it’s via the insolvency service.
The only option you have is to tell the insolvency service your situation, they will tell you what your options are.
They can take the money years after because the date of death counts and from that moment you (they) own the money even though you can’t get at it for months.
Good luck