After several years of horrific and messy financial wrangling following my divorce, a settlement has finally been reached and a court order made. Unfortunately, the lump sum order I was relying on to pay debts has not been made. (The debts were incurred by both of us but were in my name.) However, instead I have a generous pension sharing order. I am investigating "cashing in" the pension fund - not what I would choose to do ideally at age 57 but I don't think I have many choices. The max (25%)cash sum from the pension plus what I can scrape together will yield around £28K in total. My debts are £68K. I have been earning the money to make debt repayments to date by working up to 80 hours a week at several part time jobs as well as my full time job. It's not sustainable, my health is being affected and it's time to draw a line. I've done a budget plan and it's clear that the salary from my full time job alone will cover my basic living expenses but not a whole lot more - maybe £150 a month over. The question is: is it likely a "full and final" IVA based on the offer of £28K would be feasible? Or would creditors want their hands on the £150 a month excess as well as the lump sum offer? If they would, I may as well go bankrupt instead and at least would be able to leave the pension fund from the pension sharing order alone until I retire. However, bankruptcy might affect my work and would almost certainly mean me losing my car, as I don't need it for work. Does anyone have any thoughts before I pursue this further? I'd be very grateful. Thanks
Hi
I think that a full and final will work.
The £150 spare,if it indeed is,will mostly be gobbled up with ongoing IP fees so wouldn't reach the creditors.
Have a chat with an IP
Good Luck
I certainly would not be happy to take any ongoing contributions from anyone if it meant that they were being funded by somebody working 80hrs per week, it isn't sustainable at all.
As Andy says, time to talk to a professional to go over all your options.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I have just acted for someone in similar circumstances to yours, and the offer was accepted without ongoing contributions. Given your age and the circumstances you have described, I would have thought that the lump sum alone would represent a viable offer.
Thank you so much for such helpful and quick responses. You've given me the oomph to carry on a bit longer until the pension is received and cashed in. I'm getting advice from an IFA about that. Once I'm at the stage to try for an IVA I'll be sure to be in touch again. This has been such a difficult and seemingly endless struggle, but finally I can look forward to some progress. Many thanks again.
