i currently have an iva.it has been set up for about 4 months.the outstanding debt is about £25,000.this will take 5 years to pay.if i were to recieve a pension as i have just gone 50 years of age would all of the pension that i would recieve which would be about £.25,000 have to be paid to the iva to cover the debt or could i just carry on paying my monthly payments.
Hi Chris.351,
Are you thinking of taking a lump sum from your pension? , if so I think you will find it falls into the windfall clause and will have to be paid over to your IVA, If there is more than 100P/£ + fees you will keep the remainder, or you could defer the payout till the IVA ends, the law will change next year and you will have to be 55 to draw from your pension anyway.
many a mickle makes a muckle ...... if only I hadn't spent all the mickles
Once you convert a pension into cash you therefore make an excluded asset become a windfall - so do think carefully before your exercise the drawdown as this will leave you with a much lower annuity.
Nothing to stop you making an offer of settlement to creditors by using the lump sum, but make sure that this is in place before you effect the drawdown - and conditional upon creditors accepting the offer in full and final settlement.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
Once you convert a pension into cash you therefore make an excluded asset become a windfall - so do think carefully before your exercise the drawdown as this will leave you with a much lower annuity.
Nothing to stop you making an offer of settlement to creditors by using the lump sum, but make sure that this is in place before you effect the drawdown - and conditional upon creditors accepting the offer in full and final settlement.
Hi If the sale of our house has already been accepted in a variation as settlement of the IVA would I be able to draw my pension to purchase a new house and complete at the same time?
Not without the risk of losing the drawdown as mentioned above, unless you get this specifically agreed to in the variation. You are bound by the agreed terms until you get the certificate of completion.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
