inheritance & IVA

Ebonii · 11 September 2019 at 11:54AM

I hope someone can help me. I am literally 33 days off the end of my 5 year IVA and have just been informed I am to receive some money from an inheritance. But they have to do a bancruptcy check before they will release the money. Am I going to lose it all to the IVA? It is less than I owe. I had planned to fit a new boiler and central heating to my home (we haven't had any hot water or heating for 5 years as we couldn't afford to fix it) and replace the damaged double glazing (part of the IVA debt!) which was a botch job. Am I really going to lose it all? This IVA has taken such a toll on my family, I was just looking forward to getting our life back on track and now this. I'm not sure I can cope with the thought of losing this money when we are so close to ending the IVA. My marriage and my health have suffered badly during this debt - don't think I can face anymore

the kids keep asking me what's wrong but I don't want to upset them by telling them about the money if we are going to lose it.

BillEatsCrisps · 11 September 2019 at 9:59PM

Hi there
You will have to check the terms of your own IVA agreement, but usually, yes, any inheritance will be used to pay the creditors you owe through the IVA.

mwarby · 12 September 2019 at 7:11AM

Might be listed as a windfall clause or after aquired assets

Tigsteroonie · 12 September 2019 at 7:18AM

Ebonii wrote: »

I hope someone can help me. I am literally 33 days off the end of my 5 year IVA and have just been informed I am to receive some money from an inheritance.

How imminent is the windfall? If the individual has only just died, then it could be months before probate comes through, particularly if there is a property to be sold.

normanna · 12 September 2019 at 11:43AM

The inheritance should go to your IVA. The inheritance was known about before the IVA finished and that is the crucial date - not when probate etc has been completed. You would get any monies back that is left over after the IVA is paid in full (including any interest and fees).

It's not what you wanted to hear but you will be paying back more of your debt which is a positive thing and you only have a month left so you will soon be clear of the monthly IVA payment.

mwarby · 12 September 2019 at 6:23PM

Always worth checking and being upfront with IP, maybe it won't be due (unlikely, sorry) but best dealt with the easy way. If you were to get it and spend it the IP would probably be required to take action, perhaps as far as bankruptcy, this action could even occur after completion

sourcrates · 12 September 2019 at 7:51PM

The windfall clause is activated the day you receive the money, and not before, the fact you may have known about it for months is completely irrelevant, as long as your IVA has completed, and you have received your certificate of completion, then you will be fine, if it lands whilst the arrangement is still active, then do as advised above, and consult with your IP, but according to the IVA protocol, the full amount of an inheritance should be paid to the fund for the benefit of your creditors.

Really this should not be a surprise to you, you are after all, insolvent, and the windfall clause is a well known constituent part of an IVA, this is why it’s so important to actually read the terms and conditions associated with your arrangement, the money is not, and never will be yours, unless your arrangement has terminated unfortunately.

Sorry it’s not want you want to hear.

Ebonii · 16 September 2019 at 4:29PM

my last payment is due on 8th October. I now have to get a written valuation on my property because they said "when conducting, the confidence score was too low to be able to obtain the valuation" [whatever that means?] . I haven't received any money yet. I haven't received the forms to sign yet to release it. How long will it take to get a completion certificate? What happens if they want to extend for another year? This is making me so sad

I won't be able to have the boiler/central heating fitted now or repair the roof or anything

this has been going on for over 10 years now (debt management previously as they said I had to be working to take an IVA, which I later found out was inaccurate) my kids have lived through this nightmare their entire lives with no hot water or heating. They have to go to nanna's for a shower for heavens sake

I just want it all to end.

mwarby · 16 September 2019 at 6:25PM

Confidence score - I guess they tried to do a desktop valuation, and whatever tool they used gave a confidence score (based on things like number if sales to compare against etc), and that wasn't good enough, so back to old way of getting value

Tbh with that and your last payment not being till October, I can easily see it not being until early next year until you get completion certificate (if IVA isn't extended)

PrettyKittyKat · 29 September 2019 at 3:58PM

I think you need to assume that the inheritance will be paid in, then if it isn't it is a bonus.

As you are yet to assess your equity - do you think there is equity in the property?

inheritance & IVA

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