Car needs and my pension

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mr995
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by mr995 » Wed Jan 30, 2019 9:56 pm
I AM 64 YEARS OLD .I HAVE BEEN IN AN IVA SINCE MAY 2016 .I CURRENTLY PAY £60 A MONTH INTO A WORKPLACE PENSION WHICH IS AN EXCLUDED ASSET.I NEED A CAR AS THE ONE I HAVE HAS FAILED ITS M.O.T AND IS BEH OR WILL THIS BE TAKEN AS A WINDFALLOND REPAIR .WILL I BE ABLE TO TAKE A LUMP SUM FROM MY PENSION TO GET ANOTHER CAR OR WILL THIS BE TAKEN AS A WINDFALL AND HAVE TO BE PAID TO MY CREDITORS.I NEED A CAR TO GET TO WORK,ALSO IF I TAKE THIS LUMP SUM MY PAYMENTS WILL STOP TO THE PENSION SO THE £60 WILL BE COME AVAILABLE TO THE IVA
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Foggy
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by Foggy » Thu Jan 31, 2019 8:55 am
mr995 wrote:
I AM 64 YEARS OLD .I HAVE BEEN IN AN IVA SINCE MAY 2016 .I CURRENTLY PAY £60 A MONTH INTO A WORKPLACE PENSION WHICH IS AN EXCLUDED ASSET.I NEED A CAR AS THE ONE I HAVE HAS FAILED ITS M.O.T AND IS BEH OR WILL THIS BE TAKEN AS A WINDFALLOND REPAIR .WILL I BE ABLE TO TAKE A LUMP SUM FROM MY PENSION TO GET ANOTHER CAR OR WILL THIS BE TAKEN AS A WINDFALL AND HAVE TO BE PAID TO MY CREDITORS.I NEED A CAR TO GET TO WORK,ALSO IF I TAKE THIS LUMP SUM MY PAYMENTS WILL STOP TO THE PENSION SO THE £60 WILL BE COME AVAILABLE TO THE IVA


If pension and proceeds are excluded, it should be OK --- but I would check this point, in detail, with your IP and get any reply in writing (sometimes the devil is in the interpretation !! ).

If the IP decided that the draw down would be treated as a windfall, you could negotiate and seek permission to use the proceeds for a car. Again get the respose / agreement in writing.

Or ... you could OFFER to draw down sufficient funds for a full and final offer to get shot of the IVA altogether. For the porposes of this option, as far as the creditors are concerned, if the OFFER is rejected the drawdown will not take place.

As with all things pension-wise I would also advise you to seek independant, qualified, financial advice as the impact of even a modest drawdown can be far reaching.
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