Windfall After IVA Completion – Complete guide to UK Laws

Windfall After IVA Completion

If you have never heard about the wind-fall clause in an Individual Voluntary Agreement, or you can’t seem to figure out what it is, don’t worry. 

I am going to tell you all about the wind-fall clause, how it affects your IVA, and how to safeguard your interests while agreeing to the wind-fall clause. 

From the start, till you receive the completion certificate, how a wind-fall impacts your financial life – it’s all in here. 

What are Windfalls in IVA?

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

What is the Windfall Clause in IVA?

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 that is authorised and regulated by the financial conduct authority terms.

The reason for using the 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


How Does the Windfall Clause Work?

The windfall clause is pretty straight forward, it works by paying the amount of windfall to your creditors. First of all, when you are receiving a windfall payment, make sure to tell your insolvency practitioner. By doing that you will be on the safe side if any legal matter arises regarding the windfall in the future. The Insolvency Practitioner will make all the necessary arrangements for clearing the sum and paying the debt back. 

You might be able to get a small chunk out of the windfall payments only if the IP seems it appropriate after reviewing your financial circumstances.  

What Categorizes as Windfall in an IVA?


If you receive an inheritance or a legacy, whether it be in cash or property. It will be considered as a windfall and must be used for the repayments of your debt.

The personal belongings of the deceased which hold much emotional importance to you, might not be considered as an inheritance under the windfall clause, hence, IVA rules for creditors, in this case, are different.

These things usually include personalized jewelry, clothing, etc. They are not used to paying the debt back.


If you hit a jackpot or a sizable amount, that will be considered as an unexpected income and shall be used to make payments to remove the debt.

Extra Compensations

Extra compensations, such as bonuses and other schemes also come under it and are classified as additional income, hence, if you are getting a bonus, you will have to pay it to your IVA firm. 

Do Windfall Clause Apply After Completion of IVA?

If you have completed your IVA and the final review has been conducted. 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 to 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. 

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

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

To know more about the IVA completion, please click here

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Will You be Able to Keep the Windfall Money After IVA?

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. 


How Long Does an IVA Last?
The IVA is an agreement for 5 years. It can at times be extended over 5 years due to many various reasons. Such as, not paying the amount of the monthly payments and not being able to clear the net debt. In these circumstances, there are options to extend the IVA, however, the usual term for an IVA is 5 years.
How Much Time Does It Take to Complete an IVA?
According to Stepchange, you won’t be able to get more than 60 months/5 Years for an IVA, some people tend to get the completion certificate of the IVA before 5 years and some even are not able to complete it even in 5 years. It really depends on you and your IP, the better you will manage your finances, the quicker you can get over your IVA. However, the average rate for IVA ending might stand between 3.5 years to 4.5 years. 
Can You Keep Some Amount of Windfalls?
There is no specific answer or hardline rule to this question. You might be able to get a part of your windfall payment and you might not, it totally depends on your insolvency practitioner (IP). The IP has discretionary powers and by using them the IP can decide whether you should get a part of the windfall money or not. The IP will review your current circumstances and then deem whatever amount is right for you to get. Usually, the payments relate to various small purposes, hence, do not expect a high amount. Anyway, the IP may not provide you with a single penny at times, it all depends on them.
Am I Legally Bound to Pay Windfall Money to IVA?
Iva certificate is a legal binding and works as a formal agreement between you, your creditors, and the IVA company. The agreement holds quite a lot of legal value and at times is authorised and regulated by the financial conduct authority. Hence, when you sign the agreement, you are legally liable to follow all the clauses and terms. Due to this, Yes, you are certainly legally bound to pay the wind-fall money to the IVA.
Can Wind-fall Help to Pay IVA Early?
Yes! Wind-fall may have the option to assist you with finishing your IVA prior. In the event that the wind-fall money is more noteworthy than your obligation sums, you can pay your obligations in a singular amount as the last payment and get the opportunity to hold the rest of the inheritance. It will deduct your obligations and scheduled monthly payments and make you finish your IVA sooner than arranged.
What Details are mentioned in IVA
There are several details mentioned in the IVA agreement, such as your personal details, financial details, contact number, email address, and other relevant agreement terms. Monthly payments, the total amount of debt and etc.
Where Can I Get Free IVA Advice?
Credit Fix IVA does provide some amazing IVA advice, they have everything sorted out regarding IVAs and if you need solid advice, you may refer to their website (The website use cookies for a better experience)
When is an IVA review conducted?
The review might be conducted every year or every 6 months.


Windfalls at times really play an important part in these agreements and in order to protect your interests and manage it properly, you should be able to comprehend it properly.

I hope after reading this guide, you are now able to understand and grasp the concept of the wind-fall clause and wind-fall income.


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