I am thinking of letting my Iva fail ...

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lorraine736
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by lorraine736 » Sun Aug 05, 2018 5:09 pm
I am thinking of letting my Iva fail. I have a lump sum from pension I can use to offer half my debt and the rest in monthly payments and can I ask for the interest to be stopped as then the would have to take me to bankruptcy.Should I wait the 3 months for the Iva to fail before drawing out the pension lump sum.
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Foggy
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by Foggy » Sun Aug 05, 2018 5:19 pm
Do not draw down any pension lump sum until you have a termination certificate, otherwise it will be payable into the IVA.

Failing an arrangement is rarely a good idea. Your creditors will add back all lost interest and possible charges and will be under no obligation to negotiate with you at all. I doubt they will entertain freezing interest either. You will lose the protection of the IVA and creditors will be free to pursue you for repayment however they see fit.
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MerlinL14
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by MerlinL14 » Sun Aug 05, 2018 5:47 pm
If your creditors had even just a sniff that you were using money from a pension draw down they would be less than happy to freeze any outstanding interest, or allow you to use this money for a full and final when they know they can have this, your monthly payments for the remaining term of the IVA and their cake. If you proposed this option to your IP, in any meeting with the creditors someone is going to ask the question "where is the money for F&F coming from" once your IP tells them it is a pension draw down, you are pretty much stuffed. Leave it where it is, finish your IVA with it's protection and draw down on the pension (if you must) once the IVA is finalised with a completion certificate.
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Foggy
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by Foggy » Sun Aug 05, 2018 6:08 pm
I might add --- take independent professional advice before drawing the pension lump sum (regardless of the IVA position). Unless there is urgent need the long term gain to your pension pot usually outweighs the short term gain from a lump sum being drawn down.
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Lisa Thomas
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by Lisa Thomas » Mon Aug 06, 2018 8:37 am
Why are you thinking about failing your IVA?
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Ryan
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by Ryan » Tue Aug 07, 2018 1:16 pm
As Foggy says it's definitely wise to seek advice with regards to taking money out of the pension before doing so.


Regards
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