IVA Inheritance and Solicitor Help

Cc_Storm · 27 February at 5:32PM

Hoping to get some advice, feeling really stuck and defeated about the whole thing. This is a bit of a strange one.

So unfortunately I lost my job in the pandemic due to being severely unwell, leaving me with a chronic illness and no longer able to work. I already had some debt before I lost my job, and when I was super sick got into even more debt. I wasn’t able to cope any longer and looked online to see what options I had, unfortunately at the time my cognitive ability wasn’t very good due to severe fatigue and being bed bound.

I was wrongly advised to take out an IVA, I was too sick to research any other options and I felt desperate because I had very limited resources, my initial debt was around £9,000. I have been in my IVA for nearly 3 years now, I’ve been paying £100 per month and it is due to finish in 2027.

Two months ago I receive a call from a solicitor my Dad used to handle his estate as he was diagnosed with terminal cancer, he died 10 years ago to the day they rang me. They told me there had been a mistake and money that I was actually entitled to has been on hold in an account for 10 years. I’ve been through a complaints process with them, and with a small amount of compensation and interest they are offering me £8,000 they want to transfer it over to me and close the account. I am still back and forth with them at the moment and, I am contacting the financial ombudsman.

At this point because of the extortionate amount the IVA company charges in fees they will take the full amount once this is sorted with the financial ombudsman and solicitor. The financial ombudsman might say I should receive more compensation, or say they would offer less, who knows at the minute. They have pretty long wait times, and can be a lengthy process depending on the outcome.

In the meantime, a family member completely unrelated to my Dad has offered to gift money as a third party to get rid of this IVA, the payment I would need to settle would be £2,700 as, that is what’s currently scheduled to pay . Would this be illegal if I agree to accept the money ? Or could they then chase me for the money after an early settlement completion. Theres nothing to say they would in the windfall agreement.

Any advice would be helpful, this has caused me a lot of stress and upset.