bankruptcy

[clanger]

Hi

I'm about to be forced into bankruptcy by my IVA company because i won back �5500 bank charges and didn't hand it all over to them to pay off the part of the debt that i asumed had been wrote off by them. I thought the whole point of an IVA was for the creditors to agree an amount that a debtor could afford to pay back over a 5 year period. I also thought that any 'windfalls', like winning back unlawful bank charges, would go towards the amount that i was currently paying off but apparently it goes towards the amount that has been 'wrote off' by my creditors. Is this correct??

Thanks for any answers in advance

[Ethel]

Yes it is correct. Any change in your circumstances, such as this windfall, has to be declared.

IVA Procedure: changes in your circumstances � windfalls

The same rules apply to any windfalls you receive during the IVA. A windfall is an unexpected payment, such as an inheritance or a lottery win. If the windfall is of a modest sum, you will be expected to pay half of it to your Supervisor (who will add it to the creditor pot). If however you receive a massive windfall � enough to pay your creditors in full � you would be expected to pay a sum over to the Supervisor that would allow your creditors to get paid their money back in full. Once again, it�s only fair.

As with pay reviews, the windfall rule will be a condition of the IVA � so if you fail to tell your Supervisor about the windfall the IVA can be cancelled.

http://www.debtshredder.co.uk/debt-options-ind ividual-voluntary-arrangement.htm