Private pension

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moira717
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by moira717 » Tue Sep 19, 2017 7:27 pm
Hi, due to my iva having an effect on my husband's finances, he is now struggling and also contemplating an iva. He wants to know as there is an option to draw on your pension at 55 (2yrs time) would he be forced to draw on this to put in the iva? We didn't want to do this as was hoping to leave it to clear our mortgage when time came. Also as house etc all in h I s name could he be forced to remortgage. Also (sorry for all theses questions) would it matter that I am already in an iva? Many thanks
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Foggy
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by Foggy » Tue Sep 19, 2017 8:13 pm
It is perfectly possible for you both to have IVAs with no problems. In his, as the house owner, he will be required to remortgage, or at least attempt to. Some firms using 2014 Protocols and later could also force the issue with a secured loan, as this option has now been introduced. A few firms don't use the later versions and at least one (McCambridge Duffy) use the R3 terms, which do not include secured loans. Be sure to clarify this with whichever firm you use for his IVA.

Regarding the pension, they cannot force him to draw down a lump sum but he will lose it to the IVA if he does. Some arrangements, however, do exclude pensions and proceeds ( mine did).
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moira717
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by moira717 » Tue Sep 19, 2017 8:19 pm
Thank you foggy that is very helpful. As I am with step change already thought about contacting them but not sure if they enforce the loan re house?
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luna
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by luna » Tue Sep 19, 2017 8:52 pm
Hi

We were with StepChange who didn't operate the loan option and our pensions were safe.

The extension for equity was straightforward with just a couple of online refusals.

Also they didn't bother with PPI

Regards.
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Michael Peoples
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by Michael Peoples » Wed Sep 20, 2017 8:33 am
I would be concerned that your IVA appears to have lead to your husband's insolvency. In an IVA you pay your surplus income to your creditors and he keeps his for his own commitments. Some firms take everything in the household which then leaves the other party in difficulties and this should not be the case.

At the time your IVA was approved I assume he was advised to take independent legal advice especially as the property is in his sole name. He also should have been able to determine whether your IVA was adversely impacting on him and the legal advice would have taken this into account. If his situation has deteriorated drastically since your IVA was approved then there is nothing that could have been foreseen but if your IVA has caused this then something may be wrong with the payments in your IVA.

I suggest he gets advice from an independent insolvency firm. It is possible that he has been helping to fund your IVA to the detriment of himself and his creditors and as a result is now insolvent. That cannot be right.
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Foggy
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by Foggy » Wed Sep 20, 2017 8:35 am
moira717 wrote:
Thank you foggy that is very helpful. As I am with step change already thought about contacting them but not sure if they enforce the loan re house?



It will say on your paperwork which terms and conditions they use --- the secured loan option was only introduced from 2014 onwards, but firms can, and do, still use earlier Protocol versions.
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moira717
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by moira717 » Wed Sep 20, 2017 9:15 am
Thank you for your advice, not sure how much my iva has exactly impacted. Think we were both probably overstretched financially, just that now I cannot help out with things like I used to. Once in an iva it's easy to forget that although the worry has gone for you, your spouse doesn't have that piece of mind. Think he would have considered it before but was worried about our property and any impact it may have on our mortgage. Also if he could be forced to draw on his pension early as was planning not to in order to clear rest of mortgage when time came. Mine was quite straightforward as everything in his name and I took 6 yr iva saying for any equity I may/ may not have but his is obviously more complicated. Have told him to speak to McCarthy and Duffy as well as stepchange.
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moira717
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by moira717 » Wed Sep 20, 2017 9:16 am
Sorry/ meant mcambridge Duffy.......predictive text!
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Michael Peoples
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by Michael Peoples » Wed Sep 20, 2017 9:20 am
He cannot be forced to draw his pension down although I am sure some companies might try. This is entirely protected so he has little to worry about. The remortgage option may be available when his time comes as I have no idea how lenders will go over the next few years but it is unlikely and more probable is the six year option. However if he wanted he could look at the secured loan option to offer an early settlement for his and your IVAs should he wish to do so in a couple of years. It is just an option and not obligatory but could be something to consider.
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moira717
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by moira717 » Wed Sep 20, 2017 9:31 am
Think he is worried about the loan option just leading to more debt. Are there any companies known to force this. Than you for your advice. Also thank you kallis, have completed my30th online survey!
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kallis3
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by kallis3 » Wed Sep 20, 2017 9:51 am
Good news Moira! :D
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Michael Peoples
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by Michael Peoples » Wed Sep 20, 2017 11:10 am
Some of our clients look for a secured loan but most extend. I would think one or two a month go for the secured loan and that is always their own choice. Our proposals state remortgage but if someone wants to close early with a secured loan that is entirely up to them.
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