F&F and pension

biscuit1_2

Hi all am in an IVA and am 18 month in, we entererd owing some £42,000 and our iva was set up for £220 month but we also have a declared property, well mum did till she passed and we have a third share less a bit, our share is calculated to be approx £18,000 (not yet sold) totalling £31200 based on 5 years, we have to date also paid in another £1600. Where would we stand IF i was able to draw my pension in 18 months time regarding a F&F with the property not selling. Am i right in thinking the maximum we would have to pay is the original agreed £31200 less payments made

Giggles_Fairy

No the maximum you should pay, and may have to, is 100p in the £. Which is the total debt you owe plus the IVA fees, and in some instances 8% stautory interest (depending on your IVA terms and modifications).

If you intend to pay less than this than a variation is required to offer a full and final termination, which I think is what you are asking.

Is the property definitely going to be sold? Or are you asking as it is preferred that it is not sold and someone in the family takes it over?

The funds from the property sale are due into the arrangement in full.

Drawing your pension may be risky - as if you are not paying 100p in the £ and the variation is rejected these funds then become due into the arrangement anyway. If you are drawing enough to pay 100p in the £, then no variation is required, although I would consider how much funds you will then have to live off in retirement and whether it is wise to withdraw these funds early and to become debt free in the IVA quicker, and then struggle in retirement.

Have your circumstances changed in anyway - i.e. you can no longer afford it? As this often makes a full and final variation offer stronger?

biscuit1_2

The property is on the market but it is a retirement property with a £3000 a year maintanence cost to it, and its not ground floor so less attractive. i think it should sell eventually as they are starting to go and we are not being greedy over the selling price. As far as the pension goes i am aware of the possible problems i just dont trust where they may end up and think money in the bank is possibly the better option. we are both healthy and very active and have a second pension to come as well, if i am allowed to draw the pension i will still be working full time.

If anything we are getting better off paying approx £1000 a year extra, managing the budget far better, our financial expectations are far lower, a night out now is a couple of pints then home, takeaways are a once a month treat instead of the god given right mentallity "i deserve it coz i work" as far as the kids go "no" is so much easier.