bwfc15

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Bwfc15
Bwfc15 Posts: 2 Newbie
in IVA & DRO
hi all I recently set up a Iva last year round about June time, however, last week I was involved in a rta I am pursing a whip lash claim, however I’m a bit confused I have spoke to my iva company and they have said onnce it has been settled I need to provide them with a break down. As they will take a percentage the solicitors are options on a no win no fee if however I win I will be deducted 20% how much will the Iva let me keep I refused a sick note from doctor and said I will struggle through as can’t afford time off. Also after the year we have had with family issues myself and other half was planing a holiday as it money we wouldn’t of had. Can someone please help as I am now worried I will not see the benefit of my personal injury claim.

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  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    You wont see much of it, your IP will confirm what % they will take.

    Thats the trouble with insolvency, nothing is yours anymore.
    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 forumteam@moneysavingexpert.com. 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
  • Bwfc15
    Bwfc15 Posts: 2 Newbie
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    I thought the personal injury amount you was allowed to keep
  • DorisTrousers
    DorisTrousers Posts: 548 Forumite
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    Ignore speculation, deal with facts. The rules are very simple, compensation for pain and suffering are yours to keep. Any compensation for loss of earnings goes to the IVA. If there is enough from pain and suffering, you could, if you wished, make an offer to settle but you will not be obliged to.

    It isn't a case of fair or unfair, logic dictates that even if you were not in an insolvency solution then you would almost certainly use some or all of the money to settle your debts, so there is absolutely no difference whatsoever.
  • PrettyKittyKat
    PrettyKittyKat Posts: 1,270 Forumite
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    DorisTrousers is correct. Your IVA company is asking for a breakdown so that it is evidenced what proportion of the money is for pain and suffering, which you keep. If there is no breakdown then the IP will likely deal with it as a windfall/loss of earnings, which would need to be paid in.

    Although a holiday may sound enticing keeping some of the money as an emergency fund (car repairs, boiler breakdown, off sick from work etc) or depending on the amount possibly a f&f offer for your IVA could be a better longterm use for you- although of course this is totally up to you!
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