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By cazlove2004
#34200
We started an IVA in June of this year. My husband has received a letter stating he is owed £2400 tax rebate which we have checked out and this is true and will be in his account in the next 5 working days. I have phoned IVA and we have to give them every penny as it was from April2018 till April2019. We owe £4900 on our IVA but giving them the money will not reduce my payments or the 5 year IVA. This doesn’t make any sense can someone please explain.
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By Hayden
#34201
Hi cazlove2004

The terms and conditions of your IVA will clearly state that any windfalls received during the arrangement must be paid into it in full (unless the windfall is for less than £500). A tax rebate is always treated as a windfall.

Paying a windfall into the Arrangement will normally not reduce its length. You carry on paying your payments as normal. The effect is simply that the creditors in the IVA will get back a greater percentage of the money they are owed.

There is a very useful article that explains all this in more detail here: What happens to a windfall in an IVA