Im due a tax free lump sum pension

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tracy535
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by tracy535 » Fri Nov 23, 2018 7:10 am
Im due a tax free lump sum from my pension after turning 55 will my iva just take it from my bank or do i have to notify them about my windfall or will they already know
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Foggy
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by Foggy » Fri Nov 23, 2018 7:56 am
tracy535 wrote:
Im due a tax free lump sum from my pension after turning 55 will my iva just take it from my bank or do i have to notify them about my windfall or will they already know


You will have to declare it to them and pay it over to your IP, unless pensions and proceeds are excluded. Could you defer taking the lump sum until your IVA has completed ?
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kallis3
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by kallis3 » Fri Nov 23, 2018 9:13 am
How long have you been in your IVA? As Foggy says, it might be an idea to defer it.
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Lisa Thomas
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by Lisa Thomas » Fri Nov 23, 2018 9:28 am
Do you have to specifically opt to draw the lump sum or do you get no choice?

How was the pension dealt with in your IVA?
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tracy535
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by tracy535 » Fri Nov 23, 2018 2:53 pm
kallis3 wrote:
How long have you been in your IVA? As Foggy says, it might be an idea to defer it.

I have only been in it 12 months,so let me get this straight please my pension will pay me and then i will have to notify my iva about my 'windfall',.so the iva cannot just take it from my bank,as soon as its paid in by pension ,i will have to notify them ..
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Foggy
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by Foggy » Fri Nov 23, 2018 3:01 pm
tracy535 wrote:
kallis3 wrote:
How long have you been in your IVA? As Foggy says, it might be an idea to defer it.

I have only been in it 12 months,so let me get this straight please my pension will pay me and then i will have to notify my iva about my 'windfall',.so the iva cannot just take it from my bank,as soon as its paid in by pension ,i will have to notify them ..


They cannot just take it from your bank, but, if not notified, could discover the payment when examining bank statements.
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Lisa Thomas
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by Lisa Thomas » Fri Nov 23, 2018 3:04 pm
You will have to declare it and pay it over per the terms of your IVA.

If you don't you could well breach and fail your IVA putting you back to square one and at risk of recovery proceedings by creditors and/or Bankruptcy.

As I asked previously will the pension lump sum be automatically paid to you or do you have to elect it? If it's the later then I would defer this until your IVA is over (unless you want to put forward a variation to use some of the funds to agree a full and final offer with creditors).

How was the pension disclosed and treated in your IVA proposals?
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kallis3
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by kallis3 » Fri Nov 23, 2018 3:09 pm
If you can defer it I suggest you try and do so.
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MerlinL14
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by MerlinL14 » Fri Nov 23, 2018 3:30 pm
I agree with the other posters, defer the payment of the lump sum. You don't have to tell your IVA company you have deferred it, in fact don't mention the deferred payment at all or they may request that as it is available you have to take it and pay it into the IVA pot. If however you take the option of the lump sum, you lose that under the windfall clause and will have a lower pension pot at the end of it all.
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