Pensions are allowable, savings schemes are generally not. This is because everyone knows that the younger generation will not be able to survive on the state pension alone when they become due for retirement. The same view is not held about savings, which creditors will see as you keeping money from them which they ought to be benefitting from.
Westy - I am still bothered about this - your annual disclosure will show that your net income - per your wage slips will be reduced by the £100, whilst you'll show a voluntary income contribution from your family.
What happens if the SAYE scheme matures prior to you finishing your IVA - would not this be a windfall and caught under the provisions of your IVA?
Also you are building up an asset which would need disclosing to your IP- this could cause some problem.
Melanie - what do you think?
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Last edited by David Mond on Thu Apr 09, 2009 1:32 am, edited 1 time in total.
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.
Melanie, yes I see your point. Creditors would not want you to build up a lump sum to say put a deposit on a house after the IVA. But they'd be happy for you to put money into a pension, so it can be means tested and used solely for rental payments after you retire!
David, some SAYE schemes last 5 to 8 years so would not mature until after the IVA had finished. I see the problem about the asset build up though, but could this be used for a full and final settlement if it was sufficiently large ?
Those with repayment mortgages in their IVAs are effectively saving an amount each month through reducing the size of their mortgage so I don't see any big difference here for non-homeowners. Do IVAers always have to switch to interest only mortgages to prevent this ?
the other thing to consider is that the bank you pay your contributions into may credit check you and that on the back of some of these schemes terms and conditions it says you cannot enter if you are in an arrangement with creditors. I know that either the yorkshire bank or building society can't remember which, where the savings go for our scheme have this in their small print.
I'm certainly going to be looking at putting some of my iva payment into one of these once my IVA is out of the way to get some savings behind me.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
Westy wrote:
Melanie, yes I see your point. Creditors would not want you to build up a lump sum to say put a deposit on a house after the IVA. But they'd be happy for you to put money into a pension, so it can be means tested and used solely for rental payments after you retire!
David, some SAYE schemes last 5 to 8 years so would not mature until after the IVA had finished. I see the problem about the asset build up though, but could this be used for a full and final settlement if it was sufficiently large ?
Those with repayment mortgages in their IVAs are effectively saving an amount each month through reducing the size of their mortgage so I don't see any big difference here for non-homeowners. Do IVAers always have to switch to interest only mortgages to prevent this ?
No I don't think so. You are utilising part of your income to save (which you cannot really afford) and then being paid an equivalent amount of money from a relative - hence you are receiving additional income which would have to be disclosed.
The point about a repayment mortgage is that this was in being prior to entering into an IVA and unless circumstances dictate otherwise those payments continue. However a lot of creditors do insist that for the period of an IVA the mortgage switches to an Interest only one so that more money is available for the pot. This of course is dependant on the age of the debtor.
Sorry cannot agree with what you want to do BUT savings from cut backs from buget spending are a different matter to pay for other things - not a problem
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.
I completely agree with you David. IVAs are not the time to be thinking about medium term investments, but I am a great supporter of people paying into a pension scheme, so long as the payments are modest - as there really will be very little state assistance for younger people when they retire.
i was told by IP that I wasn't allowed to build up any savings (as if I could?!) When I mentioned I had to save to do maintenance stuff around the house and the monthly amount didn't always cover it. She said I wasn't supposed to build up any money and if I needed a repair job above the monthly allowance I should contact her to reduce that month's payment. I asked if that would put me in arrears and she said yes, but not really. Totally confused and she didn't explain any more. (this is third person I have dealt with in the 3 years - very high staff turnover)
Mrs Purple - seems utter rubbish and I agree with Melanie - who is your IP?
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.
I have been in my IVA since August last year. After reading these pposts i am getting worried. I am in a SAYE scheme at work and have been since before i joined the IVA. The y have never told me to come out of the scheme or anything.
Finges crossed its not a problem but then again they should of told me at the start if they wanted me to come out of it.
nat2673 - personally I think that if it hasn't been mentioned then you should be able to stay with it. I presume it shows on your payslips, which your IP would have seen when you made the application.
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Don't worry too much about this Nat - if you presented your wage-slips to the IP and they did not pick this up it is hardly your fault. If they do pick it up in the future you may have to stop your savings plan, but I doubt you would be asked to make up the lost monies retrospectively.
Hi
Going back to Endsmeet post
Do you receive regular overtime payments ? If you do then surely you could argue that the share save payment is from your share of the overtime money ?
Regards
I am getting into a complete muddle with savings. I have not yet got an IVA - Melanie is working on it - what can I try and save and from where please if it goes through and also with DMP if it does not?
