question is. 3 months ago I was advised by Harrington Brooke that if I cashed in my Pension early I could off a sum of £7000.00 in settlement of my IVA which I've been paying for 2 years now. My original unsecured debt was 27000.00 I was told I would have to pay a total of 9000.00 over a five year period. Over the past two years I have paid 2000.00 of that 9000.00. After cashing in my pension Harrington brooks told me I would have to pay £36000.00 to settle my IVA? This is £9000.00 over what my original debt was. I am waiting now to hear if my offer of £22000.00, which is the balance of my original unsecured debt will be accepted by my creditors. I feel this is fair as I will be paying all of my debt as stated at the beginning of my IVA in 2013. I would like to know where I stand if this is NOT accepted. Also how they can ask for 9000.00 OVER AND ABOVE MY ORIGINAL DEBT.I should mention that I had a lump sum with my pension but have on £27000 left.
The sum over the original debt is made up of fees and possible statutory interest and is still probably short of what you would have paid in interest over the term of the IVA, had you been paying this at the rates levied on the loan agreements.
HB should be able to give you an itemised breakdown.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I would be more inclined to make an offer for the remaining dividend they would have received based on the fact that your considering taking your pension early and would stop working thus future dividend would not be possible. But I'm a tight git...
I'm guessing you have now actually cashed in the pension and taken it early (but hoping you haven't) so there is not a chance HB could take the lot under windfall clause ?
Last edited by longslog101 on Wed Mar 18, 2015 3:37 pm, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
Sounds like you were given some misleading advice to get such varying figures for a repayment.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Down to timing --- if voluntarily drawing down a pension to pay a F&F you should make the offer first, with the draw down being conditional on the offer being accepted.
If funds are drawn first (unless specifically excluded in the arrangement) they will be open to be grabbed up to the full amount of debt plus fee and possible interest.
As you say, lifenoteasy, misleading advice, at best.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014