If you simply cash it is they will take it, unless, as is sometimes the case, pensions and proceeds have been specifically excluded.
However, you could OFFER to draw down the pension to provide a full and final settlement ( the amount based on the remaining payments due). The proviso being that, if they reject your full and final offer, you will not draw the pension and it will not be available to the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Yes unless you put forward a F&F offer to settle the remaining payments and get the variation accepted FIRST. Make sure you take advice from a pension specialist before doing anything.
I'm going to be super nice about but it but does a annoy me a little..What is the point of an IVA if it can get at your pension when in bankruptcy you are protected from any IPO getting at it?
If the funds are drawn down then they can be seized in bankruptcy also and are only protected if they remain untouched. Any income from an annuity can be used for income payments purposes so an IVA is not worse than bankruptcy.
However, if you have a pension pot worth more than your debt you may be refused a bankruptcy order as the insolvency service may deem you to be solvent whereas you could propose an IVA.
thanks for your replies..I really must read the small print, un-drawn pensions are protected when available (55)
in BR so same as IVA...eat humble pie Sponge...swallowed
No humble pie needed Sponge. It is a complicated area and been subject to a number of changes and legal challenges over the last couple of years so hardly surprising it is confusing. In addition I have heard of IP firms suggesting their clients surrender pension policies and I am sure some people have.
If you voluntarily surrender your pension, in an IVA or BKY it's available as an asset to the estate.
I haven't read too much detail on the pension debacle yet but my understanding is:
The latest pension squabble was over a Bankrupt who was entitled to draw his annuities, which were of a material sum, that would have enable contributions to be available into the Bankruptcy estate if he drew them.
There was only one draw down option available and he was only refusing to stop his creditors from getting the money.
In that case it was deemed acceptable that the OR/Trustee could force a debtor to draw this down.
In the second case there were various different options open to the debtor about drawing down their pension and the Judge deemed it was not in order for the OR/Trustee to make that decision.
