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My IVA proposal was signed and I am in the process of awaiting credit meeting date. However, as part of the process, my IP asked me to freeze my Company Pension for 60 months. My Company has said that it cannot do this as it is a "Final Salary" scheme and set in stone. I have advised my IP who is now very concerned that they cannot continue with IVA as one of my creditors is HSBC who demand 41p in the pound and IP cannot justify finding the extra £150. Everything was looking good (according to IP) for case but now I don't know what to do and feel terrible. I live with my father (OAP) who has no debts whatsoever and pay towards rent, food etc. Will I have to go bankrupt. Please could someone help me as I feel suicidal and receiving calls and a letter saying a default notice would be served on me.

Hi j.k., I can't offer any advice about your pension, but I was worried when I read that you are feeling suicidal. Please put those thoughts out of your mind, your life is worth so much more than the money that you owe.

Do HSBC hold more than 25% of your debt? Who are your other creditors? I did see a post on here recently where HSBC accepted an IVA at less than 40p in the pound.

Would bankruptcy be the end of the world for you? If you have no assets and it won't affect your job then it could be a way forward for you - you will no longer have the pressure of your debts and you can move on with your life. Depending on your surplus income you may have to pay up to 70% of it into an IPA for 3 years, but you will be left enough to live on.

Others on here know far more about IVAs than I do and might be able to offer you a solution, but I wanted to answer your post so you know you're not alone x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Skippy13

Thank you for your prompt response,much appreciated.

Will keep you updated

Hi
You may have to just opt out of your pension scheme and once the five years are up rejoin it.It may well be that it won't be a final salary scheme when you rejoin as many are changing.
Another option would be for your father to fund he £150 if he could and you to repay him after you have finished the IVA.
Finally you could insist that you stay in your pension scheme and take a gamble that your IVA will be accepted at a lower rate.
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Andy

Thank you for your response, much appreciated. Unfortunately the Company have said that they are not taking on new people into fund and also that I would not be able to rejoin.

As I write, I have just been given a salary increase effective 1st Jan 08 of an extra £650 per year. The proposed offer was to pay £399 per month to creditors after expenditure was taken out. My IP has been marvellous and emailed me today asking if I can ask my company to reduce my pension payments monthly (awaiting response) and IP currently trying to look at expenditure again. Can I ask Andy, if I could afford extra per month on top of £399 i.e. £50-100 would this help? Not sure how the workings are done.

Hi JK, I'm not an expert and Andy's advice will be invaluable, it always is, but just wanted to say a couple of things;

Skippy is spot on.... forget suicide, it's a very long term solution to what is a short term problem..... You are worth way more than your debt and when you're looking back on this episode of your life in a few years and enjoying a debt free life, taking carefully thought out and responsible decisions now will seem like the best thing you ever did. Being in debt isn't easy for anyone, especially if you feel alone coping with all the negative feelings associated with it. Visist this website as often as you need to, and I'll guarantee you read of many people facing problems similar to your own and coping with a great deal of support from each other - essentially, some fantastic folk post here and they'll all understand and offer support where it's needed, and that's on top of the unambiguous and impartial advice available freely from the forums experts.

Second point is re. pension... I had a similar situation 22 months ago and through discussion with my IP managed to put forward a good case for keeping my pension payments up through the IVA duration. My creditors accepted the position, especially as my payments included redundancy protection, so ensured they'd continue to receive payment should I face that scenario. Might be worth checking if you have that proviso in yours, might make a difference.

However you choose to go forward, very best wishes and all luck to you,

Martin

Thank you Martin.

There is evidence out there that HSBC are starting to accept dividends of lower than 40p in the £, so why not try a lower offer in the first instance to see where you get. You can always increase upwards on the day of the meeting, but if your IP carefully explains the situation regarding the pension I am sure that you will see success.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi
Your proposed pay increase will help your case and increase the dividend slightly.
From a personal point of view if I had the choice of paying into a pension or having an affordable IVA accepted I would jump at the IVA.
You can always start your own personal pension scheme once your IVA is concluded,I know that these are not a patch on the final salary schemes but sorting your debts once and for all must be a priority.
Take Melanies advice and you do seem to have a very proactive IP working for you
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Thanks Melanie, your input has given me hope and I have forwarded your comments to my IP (he is great) on HSBC issue for his information

Jeanette

Hi Everyone

Update - my IP (he is a star) has just called me to say he has had lengthy negotiations with tiks (they vote on behalf of the creditors) who would consider an IVA at 72 months instead of 60. Therefore I can keep my pension safe and just need a letter from my pension trustees to prove I cannot reduce or freeze my final salary pension which I am in the process of getting. Life seems better already and I hope my IVA will be accepted. Thanks to all of you, bless you all.

That's really good news Jeanette x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Oh JK, I am so pleased for you. Thats fantastic news. I'm sure your IVA will be approved.

Well done JK.... good move...

Martin

Great work by your IP, and indication that the guys at TIX are indeed happy to listen to a compromise. Well done all round!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp