This was touched upon recently in this forum. Someone who reached 65 and hence had access to his pension suggested he may want to defer taking the pension until after the IVA was completed. (There was nothing specific in his personal proposal about what should happen at this time).
I seem to recall the professionals on here said this was a releasable asset and therefore should be realised for the benefit of the IVA. I would assume they would take the same stance under the new legislation for people turning 55.
However, as there is likely nothing in current proposals, I imagine the same inconstant and dis-organised approach across IPs as with PPI. Heaven forbid, IVAs being keep open until for people approaching 55 so the pensions can be drained.
Expect something being written into future 2015 protocol !
Last edited by mole on Tue Aug 05, 2014 7:42 pm, edited 1 time in total.
IVA customers in their mid 50's onwards should perhaps start to make discreet enquiries regarding how to 'protect' their pensions, because you can bet you were not told that your pension would be at risk when the IVA was sold to you.
I'm sure it won't be long before we start to see enquiries on this and other forums, along the lines of 'My IVA firm wants to take my pension'.
Hopefully I am wrong, but would be interesting to read what the experts here have to say on the subject.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Creditors may feel that if the whole pension pot can be taken then why not use it to repay debt ? Not a good idea as retirement will be a struggle but I can't see creditors letting the availability of a lump sum go by
My concern is we are talking recovery of unsecured debt, to that end the IVA as was a valuable debt solution. It does appear that it's fast becoming an all grabbing solution PPI, sale of asset or threat or BR, secured loans and possible pension pots, then what use will an IVA be. To my mind the IP's role then becomes the chef at the carvery and we're the meat!
It is hard to see how the pension rule changes will not become a serious debate & issue including where debt advice / insolvency options & solutions are concerned
Pension pots can be quite sizable even on a return of a modest income. As you can see from the article the interesting bit is the 25% tax free lump.
There must be a business there just waiting to be had, where it's used to dissolve the debt(I had in mind 65% or better return to the creditors) for a one off fixed fee. Job done..creditors get a quick sizable return, on the condition that insolvency is avoided. Any takers?
