Hi, I'm currently 1 year into an IVA and want to know that if I take my pension before it ends, can I use the lump sum entitlement to pay off the remaining IVA? If so, will I have to pay the remaining full amount, and include another year's worth as the company said I may be expected to carry on paying for a 6th year. Will what I need to pay back definately not exceed the amount I would pay if I'd have continued paying monthly for the full remainder + the extra year if necessary - i.e. are there any other hidden charges?
Regards,
Derek.
Unless pension proceeds were specifically excluded in your agreement any amount you draw down will have to be paid into the IVA. You can, however, couch an offer in terms that you will draw down an agreed settlement figure -- no agreement no drawdown.
You offer a figure you feel is your best offer and they either accept or not. This figure is usually based upon what they creditors would have got if the IVA were to run to term ( including the extra 12 months).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The 'extra year' payments are usually to cover equity in your property. You could obtain a valuation to satisfy yourself on the equity position and, if there is none, use this position to back up your F&f offer/help you decide how much to offer.
My thought is your pension is there for when you're old n a bit crinkly and whilst taking a lump may clear the IVA, it won't go away for six years. I would get pension advice before dipping into it?
Sponge makes a valid point -- a quick fix now might cost you dear in your dotage -- the longer you live the more you stand to lose -- always a bit of a gamble, of course.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
