Hello. This is my first time so if I am asking a question that may have been asked hundreds of times before, please bear with me.
I recently retired from the Police force on grounds of ill health. As I had 29 years pensionable service I received a full pension and the lump sum which came with it.
The lump sum is my issue. It is more than the original amount of money I owed to my creditors when the IVA started in 2006. I would like to settle the outstanding balance as soon as possible and I was told that I have approx 12k to pay. The IP wants me to provide proof that I have sufficient funds to settle before a variation meeting is arranged. As there is more money in my account than the basic settlement figure, will the creditors expect me to pay more than the 12k I have been quoted?
The money you have received will be captured by the windfall provisions of your IVA proposal, I assume, so you will need to pay over sufficient of the money to discharge your debts in full.
If this is the case, then I cannot understand why your IP is calling a variation meeting. Are you sure that there is only £12k needed to discharge all debts in full?
Thank you for your reply. I asked the IP some months ago for a settlement figure and he told me it would be around 12k to make full and final settlement. I know that originally I owed more than 25k and have been paying £385 per month (£107 to the IP company and the remainder to my creditors) I can afford to pay the 12k and am more than happy to do so, but would I be expected to pay everything I owed at the beginning of the IVA just because I have some extra money now?
I am not working, but in receipt of a monthly pension.
As for the lump sum, suffice it to say, after sorting all matters relating to a very expensive divorce I have about 30k in the bank.
All I want to do is pay what is reasonable and then forget this whole sorry business.
I presume your IP will deduct what has already been paid. You will then be expected to pay the difference up to the full amount you owed, plus their expenses, which it does seem that you can afford.
Sharing from experiences of dealing with debt
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Rob - was your occupational pension with the police force excluded as an asset in your original proposals?
If it was then it will not count as a windfall and you are able to offer a sum in full and final settlement of your IVA.
This is maybe why your IP is looking at calling a variation meeting allowing you to make an offer of £12k rather than the approximate sum of £16,600 plus the expenses of the arrangement which would be required to pay off the IVA in full.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
I assumed that the retirement was not forseen at the time the proposals were presented, due to the grounds for retirement the poster refers to, but you make a fair point which may have relevance to this case.
Thank you for your post.
In all honesty, there was never any mention of pension or lump sum when the IVA was taken out. There didn't seem to be much concern about medium term finances. If the full settlement figure is around 12k I will be happy. After all, I did have the credit in the first place and only a sudden abrupt change in my personal life caused the problems.
That is what I assumed from your post. You really ought to ask your IP if they are treating the pension payment as a windfall, and on what basis their settlement figure has been calculated.
