Im due a tax free lump sum pension

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tracy535

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Post 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

Foggy

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Post 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 ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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kallis3

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Post 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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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Lisa Thomas

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Post 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?
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: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

tracy535

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Post 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 ..

Foggy

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Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lisa Thomas

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Post 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?
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: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

kallis3

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Post by kallis3 » Fri Nov 23, 2018 3:09 pm
If you can defer it I suggest you try and do so.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

MerlinL14

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Post 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.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
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