Can creditors in an IVA take all of my pension?

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Post by Alan.22 » Mon Mar 09, 2020 9:13 am
Hi, I am in an IVA & have 2 years & 6 months left. I am 55 this July. If I take my 25% tax free does it go straight to the IVA? I want to pay off IVA by offering full and final settlement offer, but want to know if it goes straight to IVA company first as if it does will I lose the 16 grand I get, or will they take the £3,550 I have left to pay and give the rest back if my creditors agree to it or can my creditors take the whole 16 grand?


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Post by Foggy » Mon Mar 09, 2020 9:43 am
If you simply draw down the pension it will go into the IVA and they will take an amount up to your full original debt, plus fees and possible statutory interest --- so possibly all of it !

A possible work around would be to approach your IP with an OFFER to draw down some of your pension to make a full and final payments equivalent to the remaining payments due --- if the creditors do not accept this offer then you will not draw down the pension and the IVA will continue as currently agreed. Try not to get into discussions about how much is available to draw beyond what you are offering.

I would add that you ought to take independent financial advice regarding drawing any pension, as you could lose out in the long run by having a reduced pension when you most need it ( and, hopefully, over a much longer period of time than the short term gains).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

Lisa Thomas

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Post by Lisa Thomas » Mon Mar 09, 2020 1:16 pm
I agree with Foggys' advice - taken pension advice and consider a variation offer.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: ... Z5k9ZcC2MA 01752 786800
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