ByWindfall After IVA Completion: Do You Still Have to Pay?
If you were to receive an unexpected amount of money after completing the terms of your IVA, would you be forced to spend that money retroactively to satisfy your debt? The answer is, it depends. In the interest of simplifying complicated matters, DoNotPay is pleased to present everything you need to know about getting a .
What Is an IVA?
An Individual Voluntary Arrangement (IVA) is a debt solution that people with severe debt can use in order to avoid bankruptcy. Devised as part of the Insolvency Act of 1986, the IVA protocol enables debtors to make affordable payments until their debt is resolved once and for all.
An IVA is your formal agreement with your creditors that you will regularly pay your debts (all or part of it) through an insolvency practitioner. It is a good solution if you have debts from different creditors like Amigo, Provident, Lowell Financial, etc.
Once in place, an IVA protects the debtor from further harassment. The IVA also prevents the creditor from adding late fees to the original debt. As a general rule of thumb, an IVA comes with a fixed five-year term, although a 12-month extension may be added under special circumstances. An IVA is also a great way to control your assets, instead of simply declaring bankruptcy.
Who Qualifies for IVA?
Anyone who can prove their income can apply for an IVA debt solution, provided they are at least £10,000 in debt to two or more creditors.
Typically best for those who own assets such as a house or business, an IVA provides a mutually acceptable deal between creditor and debtor, especially those who are unable to file for bankruptcy due to the nature of their profession:
- Accountants
- Armed Services personnel
- Bank employees
- Civil servants
- Lawyers and attorneys
- Police officers
- Prison officials
What Is an IVA Certificate of Completion?
If you think that your IVA deal is over when you make your final agreed-upon payment, do think again. You are still legally bound by the terms of the agreement–including the Windfall Clause–until such time that you receive an official Certificate of Completion signed by your Insolvency Practitioner, or IP.
Until you have a certificate that proves that you officially completed your side of the deal, your name will remain on the national Insolvency Register, so it's definitely in your best interest to ensure your certificate is signed and delivered in a timely manner.
Understanding the Windfall Clause in the IVA
A windfall is an unexpected or unplanned income, such as:
- Inheritance
- Bonus at work
- Lottery winnings
The IVA you sign has a clause saying that the whole amount of the windfall you receive will be used to pay your creditors. This clause is authorised and regulated by the FCA and almost every IVA has it as the goal of the IVA is to clear your debts and protect you from bankruptcy.
What About a Windfall After IVA Completion?
Windfalls of less than £500 are not typically taken to pay an IVA, but until a certificate of completion is signed by your IP, any amount of any windfall may be demanded in order to pay down the debt. This should come as little or no surprise, because you did sign an agreement that included a windfall clause.
What to Do If You Don't Receive Your IVA Certificate of Completion
If eight weeks have passed since you made your last payment, and you have not yet received your certificate of completion, something is wrong.
First, contact your IP to find out the reason for the delay. If your IP tells you that the reason is because they're simply too busy, it may be time to file a formal complaint.
Is There an Easier Way to Handle IVA?
Yes, there is. DoNotPay makes all sorts of life's tasks easier, including how to deal with a windfall after IVA or any other situation involving a debt collector. Getting started doesn't take very long, and it's a lot easier than trying to manage an IVA problem by yourself.
Here's how it works:
- Search "debt collection" on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.
That's all there 0is to it! Once we have your information, our artificial intelligence robot lawyer will start helping. We can write and deliver a request for a debt validation letter, demand the creditor cease harassment, or we can file a complaint with the proper agency.
DoNotPay can also help you handle debt recovery issues with the following:
| Moorcroft Debt Recovery | Advantis Debt Collection |
| DWP Debt Management | Marston Group Holdings |
DoNotPay Takes the Trouble Out of Everyday Life
No matter what you need to do, DoNotPay makes it easier. Not only can we help you with collections agencies, we can help you locate legal docs and file claims in small claims court. We can help you find a prison pen pal or get you an excess baggage fee refund.
DoNotPay helps people like you cancel subscriptions, fight traffic tickets, and apply for government programs. When you stop and think about it, there are very few situations DoNotPay can't improve.
- Signing up for free trials risk-free
- Helping with overwhelming bills
- Using free virtual credit cards
- Suing individuals in a small claims court
- Contacting customer service without a long wait
- Using burner phones to skip phone verification
- Negotiating hotel bills
- Getting chargebacks and refunds
If you want to know more about what to do with a , you've come to the right place. Once we've eased your mind about your IVA, browse our website to see the other time-saving, problem-solving solutions we have to offer.