Should I access my pension pot before my IVA starts?

[sharon467]

I am going to be getting an IVA soon & I could potentially access a small pension pot, not enough for a lump sum IVA, but enough to pay off my overdraft.
Legally, do I have to pay this into a new account, so it can be shared amongst all my creditors, as technically, it would be giving preferential treatment to my bank or should I leave it safely with the pension company for now?
It’s only a couple of grand & my total debts are about £70,000, so a drop in the ocean, really!

[sharon467]

I am going to be getting an IVA soon & I could potentially access a small pension pot, not enough for a lump sum IVA, but enough to pay off my overdraft.
Legally, do I have to pay this into a new account, so it can be shared amongst all my creditors, as technically, it would be giving preferential treatment to my bank or should I leave it safely with the pension company for now?
It’s only a couple of grand & my total debts are about £70,000, so a drop in the ocean, really!

Or can I just give to my daughter, who needs a deposit for a flat, as she’s about to be evicted?

[Foggy]

Depends on what you mean by "soon" -- too close to getting the IVA and credtiors might get miffed ... a bit further away and they would never know.,

[sharon467]

Thanks, probably a couple of weeks away, I’m thinking if I just get it paid straight to my daughter, no one would know, but obviously don’t want to risk ending up in court!

[Lisa Thomas]

You will have to declare it in your IVA proposals as a potential claim that creditors might prefer a Trustee in Bankruptcy to look at.

This might discourage them form approving the IVA.

It's not worth the risk imo.

[sharon467]

Thanks Lisa.