Hi,
Myself & my husband have been in an iva since April this year. Our debt was about £50k & on the I've we have to pay £25,800 & pay £430 a month.
In two years time, now the law has changed on pensions, I am able to take 25% of my pension tax free. In two years time by my calculation we should owe approx £13,000.
I am considering take 25% of the pension to pay off the iva.
Once the £13k is paid would the iva be complete or would we be expected to carry on paying for the whole 5years & pay more than the amount of £25,800 on the iva
If anyone can help I would appreciate it
Thank you
If you are drawing down part of the pension voluntarily then you could use it to fund a full and final offer. This will be based upon the number of months left multiplied by the then monthly amount. If you own your property you might have to increase this by 12 months.
Read your paperwork carefully as any draw down might be subject to the IVA if drawn for anything other than a full and final.
Also, I would advise taking financial advice before drawing any pension as the effects will last longer than the IVA would have, and the changes in rules are not as straightforward as first thought, with reports of potential fines and penalties now emerging.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
