implications of my husband gifting me a lump sum in offer of full and final settlement

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Thanks for your question. A member of the team is looking into this for you and we should have an answer soon.

Hello,

A partners windfall is not usually captured within your individual arrangement. However it is worth checking the clauses in your proposal to see if anything exceptional was written in with reference to your husband, particularly if the IVA is based on a joint household income/expenditure.

Assuming that there is no clause, and your husband does not have his own IVA obligations, there would not normally be any issue with him putting forward an offer to settle your IVA. The offer depends on what your husband can afford and what will offer a good return to your creditors. The settlement figure is usually based on what you originally proposed to be introduce, less what you have paid in so far.

It is best to approach your IP (Insolvency Practitioner) to ascertain the level required to settle your arrangement.

Thanks

Your IVA supervisor must be the first person you talk to on this matter. For example, if there is a clause in your IVA where a lump sum payment is required nearer the end of the Insolvency (typically month 54), this date could possibly be brought forward to close off the Insolvency if the amount is acceptable to your creditors.

In our recent experience ,where a lump sum payment is required at the end of an Insolvency, but the figure available is insufficient to meet the original proposal, we have had some cases accepted where the creditors have agreed an offer off between 30% to 45% of the original requirement.

That isn't to say your case will be similar – it depends entirely on your resources in terms of continuing monthly payments, the lump sum amount available and your specific creditors' attitudes to this kind of offer: Each case is taken entirely on its own merit by the creditors. You must approach your Supervisor to discuss this.