Medically discharged

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carl570

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Post by carl570 » Thu Apr 11, 2019 4:45 pm
I have just been medically discharged from the military, and in doing so I was entitled to a pension lump sum.
Is this a windfall? My iva are very insensitive with the whole situation and cannot get an answer from them.
They just said a redundancy is a windfall but I got discharged on medical grounds so I'm a little confused with the whole situation...

Foggy

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Post by Foggy » Thu Apr 11, 2019 5:38 pm
You refer to a "pension lump sum" ... this is treated as a windfall, as is a redundancy payment (save for 6 months equivalent of salary).
Some firms treat "golden goodbyes" from the military differently, but this is a matter of discretion and / or the agreed terms in this respect.
If this is a pension lump sum, can you not defer draw down until after the IVA has ended. Or, tell your IP that you will consider drawing down an amount for the purposes of a full and final offer (if the offer is rejected, you will not draw funds out of the pension). The amount you offer will be based on the number of months left to run in the IVA x the monthly amount.
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 » Mon Apr 15, 2019 11:54 am
If your IP cannot give you a straight answer it might be best not to take the lump sum until your IVA is over, assuming it is optional.

I would expect if you drawn down a lump sum it will rank as a windfall in the IVA and will all be payable into the IVA (unless and until total debts costs and interest are paid in full).
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
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