Topic: Gift from Parents after discharge but while in an IPA?

[jono987]

Hey everyone, my parents have some money saved for me, around £15k. Im due to be discharged in December. If they give me it in January and i put it in an ISA, will the OR take it because im still in an IPA? Or will they just take the interest earned from it? Thank you!

[Lisa Thomas]

Hi Do you mean you are in an IVA Individual Voluntary Arrangement?  Or do you mean you are bankrupt and subject to an Income Payment Agreement?

[jono987]

Good morning Lisa thanks for your response,


I am due for bankruptcy discharge December but will be in an Income Payment Arrangement for two years after this So i meant bankruptcy IPA not IVA.

Thanks!

[Lisa Thomas]

You shouldn't be taking any gifts/assets whilst you are still Bankrupt.  They could however offer a third party settlement from their funds to settle the remaining 2 years IPA. 

[jono987]

Thanks, the gift is no where near enough to settle the bankruptcy. From the research ive done, i should be able to accept a cash gift after discharge? As its not classes as income?

[Lisa Thomas]

How much are you monthly IPA payments?  How much is the proposed gift?


It would be classed as an after acquired asset and be due into your BKY estate if you accept it.

[jono987]

Oh ok thanks, my IPA is £100 a month the gift is 15k, its savings my parents have saved over their lifetime for me and my older brother.

[Lisa Thomas]

so if you have c 2 years left to pay in your IPA you will be payinf £2,400.  It seems you have plenty to offer to pay this as a lump sum from your parents money?

[jono987]

Hi, yes but as far as im aware this will not end the IPA. The official receiver will still want to know any changes in my incoming / outgoings. I wasnt aware you were aloud to pay off your IPA, only an IVA.

[Lisa Thomas]

Not if you have done a deal - you will settle the IPA early (if they accept) and they can then also close the BKY early (if no other issues to deal with).

[jono987]

Oh wow i never knew that! So do i contact the OR, tell them my parents have some money saved and have offered to settle my IPA? Should i wait until January when i am discharged?


Does this mean i can look for better paid jobs after its settled without risking all the extra money up?


Thanks!

[Lisa Thomas]

It will be up to the O.R to decide but worth asking now so you can get it settled as soon as possible if they say yes.

[jono987]

Thank you, i will fire an email to my OR and see what their stance is

[Lisa Thomas]

Best of luck.