Posted: Fri Sep 05, 2008 2:19 pm
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