Should I access my pension pot before my IVA starts?

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sharon467

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Post by sharon467 » Wed Jul 31, 2019 1:55 pm
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

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Post by sharon467 » Wed Jul 31, 2019 2:09 pm
Wed Jul 31, 2019 1:55 pmsharon467 wrote:
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

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Post by Foggy » Wed Jul 31, 2019 2:39 pm
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.,
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

sharon467

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Post by sharon467 » Wed Jul 31, 2019 2:45 pm
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

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Post by Lisa Thomas » Wed Jul 31, 2019 3:15 pm
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.
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

sharon467

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Post by sharon467 » Wed Jul 31, 2019 3:18 pm
Thanks Lisa.
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