Hi, I am 3.5 years into an IVA. in 3 months time I will be eligible to claim a cash lump sum on a small pension. can I use this to clear my outstanding 18 month's or would this be classed as a win fall ?
Pension funds are usually excluded from IVAs, so there should be no problem in using the funds you can release to settle your IVA, but do be sure you are not damaging long-term investments for a quick fix out of your IVA. Retirement can be a very long time if your funds are limited.
thanks for the quick response Melanie....Its been a very bumpy road being in an IVA and I would like to get the 'monkey off my back'....this is not the only pension I've got but will mature when I reach 55yrs, I will be able to get a cash lump sum which I believe will more than cover the next 18months of payments.
I am paying £400 per month which would be £7200, my pension after tax would be around £12000....do you think it would be worth me asking for a settlement figure and tell them about the pension?
Definately worth looking into Kevin, buyt also seek advice from an IFA with regard to disturbing your pension funds - just to be sure you are doing the right thing.
Spoken to IFA, my biggest concern is if i am open about the pension and receive more than my 18 months remaining payments, will they want all the funds I receive to settle the IVA?, or just the 18 months as a[?] settlement figure.
Living in an IVA for so long, I could do with a bit left over to get back on track, if you know what I mean.
