www.iva.co.uk

Hi all,
I am about to complete my first years iva & am currently waiting to hear back from DFD regarding my first annual review.My agreed dividend is 20.1 in the pound against an original debt of £72,000 with a fourth year equity release clause.I could not afford my monthly payments without my partner who moved in with me last year but who had nothing to do with ANY of my debts.This a causing a lot of stress in our relationship & if we did end up slitting up i could no longer afford the iva.I have just turned 50 & have been alerted to the fact that i could cash in and old company pension which should enable me to make a F&F of around £20000.
On the basis of a rocky relationship at the moment do you think this might be accepable to the creditors ?,my worry would be that they would take this amount & still expect the iva to be completed. Any advice please ?????

Regards

Dave

Hi
I think that you may have a good case and a very good chance of acceptance.
Pension pots are usually exempt from IVAs so I would speak with your IP and initially offer 15k.
Regards

Thanks Andy

I am surprised that you suggest offering less than the full amount,to be honest I could do with keeping a bit back as the central heating hasnt worked for months & I suspect as its at least 20 years old will need a fair bit of money spending on it. !.
Also are you saying that my pension pot is safe even if they reject the F & F ?

Regards
Dave

Hi
Yes it is, unless it was written into your IVA.
Only cash it in if your offer is accepted, otherwise leave it until your IVA is over
Regards

It does depend upon the type of pension fund you have, so best to check with the IP concerned. I would also take advice from an IFA if you have no other pension provision, as the downside of cashing this in now may leave you exposed financially when you come to reach state retirement age.

The other thing you will need to do is to take account of any equity in your property, and whether the recent reduction in interest rates leaves you with a higher disposable income - as you will have to declare this as part of any variation offer as well.