If I restart my pension and take out life cover will IVA payments be reduced accordingly ?

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Steven.dx

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Post by Steven.dx » Mon Sep 03, 2012 12:33 pm
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Ive just finished my first year and about to start my second.

I cancelled life insurance and froze my pension a few years ago, but its a very sensible thing in life to have life cover etc.

My question being if I was to re-kick start my pension and take out new life cover incase the worst ever happened would this cost be taken into consideration and reduce my IVA paymants?



Question being,
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Niobe

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Post by Niobe » Mon Sep 03, 2012 12:46 pm
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Hi Steven,

I think you would have to make these payments from savings from your allowances.

I can't see the creditors wanting you to reduce the payments.

Hopefully one of the experts will be along to advise.
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David Mond

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Post by David Mond » Mon Sep 03, 2012 12:46 pm
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You should discuss this with your Supervisor. It is very rare that creditors would agree for you to make pension contributions whilst you are in an IVA and for the duration of the IVA. It would depend on your age in some respects.
Again Life Insurance would depend on what your current status is, single or married and/or with dependents.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
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Skippy

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Post by Skippy » Mon Sep 03, 2012 12:50 pm
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Were you asked to freeze your pension contributions as part of the IVA?

I know it's a while ago but when I went into my IVA and subsequent BR my pension contibutions weren't questioned at all.
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scoobydooby

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Post by scoobydooby » Mon Sep 03, 2012 1:56 pm
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I pay into my company pension every month - I was doing so before I started my IVA and it wasn't questioned at the time.
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Niobe

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Post by Niobe » Mon Sep 03, 2012 2:09 pm
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I think it depends upon what your pension is. I pay into mine and have been allowed to but there is a limit as to how much you are allowed to pay.

There may be a problem if you try to restart or start a pension.
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MelanieGiles

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Post by MelanieGiles » Mon Sep 03, 2012 11:56 pm
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If pensions are in place once an IVA is proposed, then creditors are usually very happy to accept that the contributions into the pension scheme are a priority payment. I have supported a few of my own clients who have asked to commence a pension plan during their IVA, so long as this does not disturb their ability to make their payments into the IVA. If you are projecting that you would have to reduce your IVA payments to be able to pay the pension, this is unlikely to be acceptable to either your IP or creditors - but probably should have been considered at the time you entered into the IVA.
Regards, Melanie Giles, Insolvency Practitioner
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