Should I use pension or loan from family for full & final IVA offer?

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jayne935
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by jayne935 » Thu Mar 29, 2018 12:23 pm
I would like to offer full and final settlement. I can take some of my pension lump sum. Am I more likely to be accepted if I use a relative to offer me a loan or use my pension?. I am nervous about using my pension in case they want to take it all.
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MerlinL14
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by MerlinL14 » Thu Mar 29, 2018 12:49 pm
Personally I wouldn't even mention my pension as once they know you can draw down on it it could be seen as an asset and taken to improve the dividend to creditors, Mum's the word!
How long have you left to complete your IVA? A F&F proposal could take 6-10 months to be put in stone as no one seems to make a very concerted effort to speed up this process. You can't clean up your credit report until the 6 year anniversary of the start of your IVA, so additional credit of any form is out the window. Once you make the F&F and if it is accepted you then still have to find the money to pay back your relative. Experience tells me that borrowing from a relative can be a stressful process.
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kallis3
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by kallis3 » Thu Mar 29, 2018 12:50 pm
You are likely to need your pension so if a relative could help you out it would be better.
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Foggy
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by Foggy » Thu Mar 29, 2018 1:43 pm
A relative would be a safer option ..... if you want to draw down to repay them once clear of the IVA it would be much simpler then. But ... do take independent advice on draw downs ---- it is a potentially long term loss, when retired, against a relatively short term gain.
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Lisa Thomas
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by Lisa Thomas » Thu Mar 29, 2018 3:34 pm
It can't be legally classed as a 'loan' and must be a gift but a gift from parents would be a lot simpler.
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Ryan
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by Ryan » Thu Mar 29, 2018 4:06 pm
Hi Jayne,

As Foggy says best to get some expert advice with regards the pension.

Regards
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