Pension Lump Sum and IVA

Maverock

Hi everybody, I hope you can help with some advise here.

I took out an IVA in June 2012 for depts of £28000. This was reduced to 68p in the pound at the start of the IVA. 3 months ago I took 2 moths repayment holiday to finance a replacement car, but apart form that all payments are up to date.

Last week I received a letter from Legal & General informing me of an old private pension that is due mature for payout in December. This will produce a lump sum of £17000. I phoned my IVA provider today to declare this and was told that the whole amount would have to be placed into the IVA.

So far I have payed £5,300 of the dept following payments of £340 per month. I was wondering weather I should suggest to my IVA provider that he/she ask the creditors to use this amount of £17000 as a full and final settlement?

I am assuming that the 68p in the £ means that my original dept of £28000 was reduced to just under £20000? which would mean that my dept, before IVA charges, is now £14,600?

Do I have any leeway for negotiation here? As I could have used a little of that money, though if it will pay off the whole dept I will be more than happy to accept that.

Any advice would be most welcome

Thanks

UpToMyNeckInIt

Did you no know if this impending payment last Year? It is a great shame that you were not able to 'hold out' for another 18 months or so, as this sum would have made your debt much more manageable.

Check your IVA paperwork: Some actually exclude lump sum pension payments from the general 'windfall' clause.

However, you seem to have misunderstood the terms of what you owe: You still owe £28,000. The 68p dividend is the minimum that you have pledged to your creditors.

Therefore, if your pension payment is NOT excluded, your IVA company is within its right to ask it to be paid in.

Not sure about asking for a F&F if you still have a regular income - you will have to pose this question to your IVA company.

Regardless, the good news is that this lump sum + your current rate of payment, means your IVA will conclude early. You might not have had any of your debt 'written off', but even after paying the IP's fees, you will have still saved a bundle in interest.