www.iva.co.uk

We finish our IVA on Oct 2013, but in May 2013 my husband will receive approx £40k payment for his army pension. Will the IVA company beable to touch this money?. Its very worrying as its only 5 months prior to the IVA ending.

The money would likely be a windfall if drawn down before the IVA is completed. However, your husband could defer the payment until after the IVA or offer a lump sum as full and final before May. If creditors agree to the settlement figure he could then draw down the funds.

Unforunately there is no way we can delay the lump sum payment. In May 2013 we will have only £3000 remaining to pay on the IVA. Are they likely to accept this amount or demand more money as we now have £40k available? As its a pension does this still count as a windfall?

It would still count as a windfall but if your IP put a variaton to creditors that your husband was to draw down his pension and pay enough to achieve the original dividend it would probably be accepted. The alternative would be a full and final settlement now if you were able to source third party funds. This could then be repaid next year.

It would be very difficult to defer the payment if your husband has reached the 22 year point and not decided to ETR.

What a shame this was not forseen when your IVA propsals were first presented, and this sum specifically excluded. That money will be needed to resettle your husband into civilian life and to provide housing for your family. Were you aware of the timing of this payment when you entered into the IVA?