i am in the first year of an IVA. I had a letter which came out of the blue from the military saying that i may have a pension with them and to complete a form. i duly did this and to my surprise i was entitled to one though only small. They backdated my pension and i received one years worth of arrears. I am close to my first annual review. i did call my iva people straight away without anything else they stated the whole lot some 2000 needs to be paid in no discussion etc and not allowing me to explain the circumstances i.e not a lump sum but a monthly pension. My wife is disabled and i am her carer as such we are in reciept of benefits. We have advised both DWP and ESA as there is a possibility we owe them money as the pension was backdated. I have advised the IP of my situation and as such the money is in my bank account awaiting assessment from the DWP etc. Once any monies i have to repay are deducted do i have to pay the money left over into the iva can i keep any etc. At the time of entering the IVA i was not aware that i was entitled to this money so it is extra income i admit but the money we receive from the dip will be reduced because of his money it is small just over 150 pounds per month any help or advice as my iva company are only interested in getting the money with no support from them
The 'new' pension will add to your income and, so will increase your disposable income and therefore your IVA payment. Going forward I would have thought that the extra monthly amount should be treated in the same way as a pay rise --- you keep half of the net increase in income while the IVA gets the other half. Any arrears paid across to you as a lump sum would be likely considered a windfall and payable to the IVA in full.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
