Query on discharging an IVA

stevenm37

I have three pension policies, one I pay into and two dormant. I have one with just over 10k in that been dormant since 2005. It would pay very little at retirement and as my main one is going to be quite sufficient ive just left it sat there.
I am currently in an IVA and just started year 3. The 10k in the pension would more than cover the IVA, but is this something that could be done? To release me from the IVA and free up my finances the value of the pension once I am 65 is nothing compared to what it would be worth to me today if it could be used to discharge the IVA.
Any advice on this one would be greatly appreciated.
Cheers Steve

Anondebtadvisor

Has this pension been excluded from your IVA?

If so you could use it to offer a F&F settlement, if it is an asset you may be required to pay it into the IVA.

Have a chat with your IVA company to see if it is an excluded asset

stevenm37

I would like to think it would more than cover what remains, I pay £115 per month and have 3 years left so a F&F settlement may be around £4k - £5k, that said I am sure they would take as much as they could in charges and interest. To be free of the IVA would be like a noose coming off my neck though!

MrsGregs

Good luck with this.

My understanding of the IVA is that the total remaining payments due, ie your £115 per month for approx 36 months, is not necessarily the amount that would be taken into account if you have funds available that exceed it (if that makes sense). They are more concerned with the total amount due.

eg, £115 x 36 months = £4140 total remaining payments due.
Total debt remaining = £8000 (for example)
Total funds available = £10000

My understanding, from my own IVA agreement, is that the amount requested by your IVA company may exceed the amount you would pay if you carried on paying month by month.

Before cashing in your pension I'd suggest checking this with the IVA company, it may be worth just putting the money aside for the monthly payments if this works out cheaper.

Good luck, I hope this helps.
Tanyia