www.iva.co.uk

Hi, I hope someone can help please. I have a few questions about making a f&f payment on my IVA. My situation is that we owed just over £100k and had an IVA agreed to repay about £45k and am three years into repaying. We took one payment holiday which has been added on and repay £660 a month. My circumstances now are that I can take a tax free lump sum from my pension in 6 months time and want to finish the IVA. My questions are

1. I can offer the whole remaining agreed balance but I have access to much more than that if I wanted, probably enough to repay the original debt if needed but I'd rather not if possible. Would an offer of the balance be accepted do you think?

2. this money will be available in six months time but could I ask them to include the payments between now and then in the f&f payment so that I could stop making payments now?

I'm really not sure how to proceed but desperately want this to be finished so I can start again. Any help would be appreciated.

First of all is this lump sum draw down purely voluntary ? So you can go to your creditors and say you will draw the lump sum IF they will accept the F&F, otherwise it stays in your pension fund and they will not get it.

You should offer the remaining payments x 660 plus the arrears, unless you own your home and will have equity to be looked at (usually an extra 12 months payments can be factored in for a F&F in this regard.

Point 2 would have to be discussed with your IP.

Ok thanks. The pension is purely voluntary but I will miss out on payments if I don't take it as it s a final salary scheme. So if I was to offer say the outstanding 3 years payments plus an extra 12 months as I live in my own home, would this seem like a sensible offer?

It would be a very good offer (as I see it). They will be getting what they signed up for, in advance, and in a lump (no fiddling about with installments) and they will be sure of getting it and no worry of the IVA failing between now and the end.

It's interesting to see this topic come up more often. See how things unfold from next year as access to your whole pension pot become available.

Raven your IVA stays with you for six years paid up or not and being on an earlier protocol (better) I'd get some advice regards the pension just before committing to an F&F of that order.

That said it's what we all signed up for so I can't say it's over the top, but just wonder wonder well a little less as it's voluntary, now and it's a lot of money, wish I could be more expert like in reasoning

I know beer n curry, it's a good starting point