www.iva.co.uk

I have a savings account with a few thousand pounds in it. Would this be safe if I entered into an IVA. This was intended for my retirement.

Hi All Spent Up and welcome to the Forum.
This would be deemed as 'cash in hand' and made available to your creditors. You can pay into a pension while in an IVA or save for your retirement when the IVA is completed.

In essence, you would not have been able to save had you not financed essential living costs with creditors so it only fair for them to benefit from that money.

Its best if it went under the mattress then

I don't recommend doing that.

You should be upfront and honest when speaking to an IP about a possible IVA. The idea of an IVA is to pay back as much as possible to your creditors.

I would not recommend it either as your IP will want to see bank statements anyway. However, if there are urgent expenses that need paying such as arrears or car repairs your IP may feel that it would be reasonable to use some of the money to clear these.

Ultimately creditors would be prepared to forgive a percentage of your debts so being up front as Jan says means that nothing could come back later to jeopardise your IVA or even lead to criminal prosecution.

I agree with Kallis and far better you air questions like this so you know exactly where you stand and also it helps those out there reading but not wanting to post a question.

Once your IVa is over you'll be debt free, a lot richer in your pocket and then able to focus on your retirement.

Depending on how much a "few thousand" is, you may be able to offer a full and final settlement now to get the debts sorted and get on with your life even more quickly.

Regards,

Its my creditors that helped me get into this mess. ie. THE BANKS. So why should I give them every penny I have. I have had my income reduced by 40% because of them so I think its only fair that they only get back 40% of what I owe them. After all they aren't suffering like we are, are they?

Presumably you borrowed the money in good faith intending to repay it?

An IVA is a way of paying the most back to your creditors that you can afford, so maybe if you're not prepared to do this you should consider very carefully if it's the right route for you.

Hi All spent up,
I cannot agree with you I am afraid. If you have credit card debts you have spent the money on something, it was given to you initially on the understnding it would be paid back and it would appear that that day has now come. We are all fortunate that there is such a thing as an IVA which allows us to pay back the maximum amount what we can afford, and part will be written off. Would any of your friends have lent you money on that basis??

I can understand your frustration with the banks and you could petition for bankruptcy. They would get little or no return and if there are no implications for you it could be the best option.

However, if you do propose an IVA you will have to be up front and make your best offer of repayment.

I wish I actually had some savings to pay to my creditors

I know Imhotep, I'm sure I had an ISA once. Long since pillaged to buy food and pay bills!

He would still have to give up the savings though in bankruptcy.

Al_spent_up, the banks may have loaned you the money, may even have thrust it at you.

You did not have to accept.

When you took out the loans, cards etc, it was presumably with the intention of paying them back in full.

This is the chance to make a fresh start and pay back as much as you can.

Good and sensible advice from all posters. IPs are a unigue breed - we have sensitive noses and eyes in all locations, and generally if something doesn't seem right it generally isn't.

We will generally find things that are hidden, and at the end of the day you have to declare that the facts you are presenting are true.

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