Windfall After IVA Completion - Complete guide to UK Laws

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Are you wondering if the windfall clause applies after the completion of IVA? You’re in the right place for answers! Over 170,000 people visit our website looking for guidance on debt solutions each month.

This article is here to help you understand:

What the Windfall Clause in an IVA is
If you can cut down some of your debt
If the Windfall Clause is still important after you finish your IVA

From July to September 2023, the Gazette reported that there was a total of 13,965 Individual Voluntary Arrangements.¹ This statistic highlights the importance of understanding their implications, especially regarding windfall sums.

Don’t worry! With our expertise, we’ll help you figure things out.

Let’s dive in.

What does the Clause state?

When you sign an Individual Voluntary Arrangement, any unexpected or unplanned income that you receive is considered a windfall income.

The windfall clause in the IVA states that if you receive any unexpected or unplanned income, such as inheritance, all that money should be used to pay your creditors.

This clause is a major agreement term that is found in almost every Individual Voluntary Arrangement and is authorised and regulated by the financial conduct authority terms.

The reason for using unexpected income to make payments to your lenders is that the IVA is signed to save you from bankruptcy and clear off your debts.

Hence, any windfall income shall be used for the benefit of your creditors.

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Does It Apply After Completing An IVA?

If you have completed your IVA, the final review has been conducted, and the results have also been approved by your IVA agency, that means that you are out of that agreement.

After you receive the completion certificate, you are not liable for the terms and conditions of an IVA agreement.

Therefore, getting a windfall income after the completion of your IVA is a different story.

You will not be asked or be liable to pay your unexpected income to the IVA agency because the agreement has ended, and so has the terms.

How a debt solution could help

Some debt solutions can:

Stop nasty calls from creditors
Freeze interest and charges
Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:

Situation

Monthly income	£2,504
Monthly expenses	£2,345
Total debt	£32,049

Monthly debt repayments

Before	£587
After	£158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

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Are there any Legal Repercussions for Not Paying It?

There can be no sort of legal action or breach of the agreement in this case since the agreement no longer exists.

To know more about the IVA completion, please click here.

Will You Be Able to Keep the Money Afterward?

Yes!

As mentioned before, you are not liable to pay the money to anybody. You can keep the full amount after taxes, and there would be nothing wrong with that.

If you get any windfall income that is smaller than £500, it shall not be usually paid towards the IVA agreement.

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