Feel a bit of an idiot, took payment of my private pension of £11,000 during IVA

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jane375
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by jane375 » Mon Jul 17, 2017 5:36 am
I have an IVA with Creditfix. A couple of months ago I took payment of my private pension of £ 11,000, mistakenly thinking that they can't touch your pension pot. Foolishly, I didn't take advice before claiming it.
My daughter has been receiving Disability Living Allowance, but now she's turned 16, they have stopped this. Consequently, my income has reduced drastically because I got extra working and child tax credits because of her disability. Plus, my rent is going up in August.

I was thinking I could live on this pension pot, whilst I try to find a second job. I currently work part time, and am a single parent. I can't claim working and child tax credits for the rest of the tax year due to receiving the pension pot, so I'm in a bot of a pickle.

We had to move house last year due to our landlords retiring and selling up, and during the move I appear to have mislaid my paperwork, so I'm not too sure where I stand with my ongoing debt.

I'm terrified they're going to take all the money, leaving me with approximately £ 700 per month to live on. I currently pay £ 100 per month into the IVA and have never missed a payment. It started on 29th April 2014.

I know I should have looked into this and feel a bit of an idiot, but it seemed like an ideal solution to my situation with my daughter's DLA finishing. Any help greatfully accepted !!
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Foggy
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by Foggy » Mon Jul 17, 2017 6:51 am
First of all you need to get a copy of your proposal and chairman's report ---- assuming you have informed your IP of the move (as you are obliged to do) just tell them you have mislaid your copy and ask them to provide you with another.

Then see what it says about pensions (usually undert the "Assets" sections). Sometimes pensions and proceeds are excluded assets --- now, if this is the case, I would surmise that the drawdown would be OK (although your IP could still take a different view as much is down to interpretation).

Hopefully an Industry Expert will be along to give more useful advice later.
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luluj
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by luluj » Mon Jul 17, 2017 9:03 am
I can understand your situation. Take Foggy's advice and get a copy of your paperwork - read it thoroughly then speak with your IP.

Feel free to post the wording on here and we will offer our interpretation of it.
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jane375
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by jane375 » Mon Jul 17, 2017 3:17 pm
Hello Foggy and Lulu, thank you for that.I have contacted Creditfix and requested the proposal and the Chairman's report and I'll just have to wait and see, although I'm so stressed. It's all I can think about and my annual review is due. Aaaargh !!
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jane375
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by jane375 » Tue Jul 18, 2017 4:41 pm
Hello again everyone.

I posted on here about taking my pension pot to live on due to a drastic reduction in my income, without checking first. I just thought that pension money was exempt.

My IVA is for £6000 over 60 months at £ 100 per month. The total debt was £ 14, 760. The first payment was October 2014.

Would it be worth me letting the IVA fail and tackling the debtors myself or would they push for bankruptcy ? I know this is my fault and I should have checked, but I didn't fully understand, as when I took the IVA out, the pension rules didn't apply and I wasn't old enough. There is no specific mention of pension draw downs in my proposal, as it didn't apply then.

The pot is £ 10000. I'm at my wits end as I was relying on this money until I can get additional employment sorted out, which isn't that easy as I already work 3 days and employers generally want you to be available to cover sickness and holidays, which I would be unable to do.

I am a single parent and my daughter's DLA has just stopped, reducing my income quite drastically.

Can they leave you destitute ?

I'm worried sick. My annual review has now kicked in and I'm dodging phone calls until I decide what to do !!
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kallis3
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by kallis3 » Tue Jul 18, 2017 4:58 pm
Merged to avoid confusion.
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Foggy
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by Foggy » Tue Jul 18, 2017 5:37 pm
Drawdoe=wns wouldn't be mentioned specifically. In my proposal under assets the pension was mentioned and said that it was proposed to exclude pension and proceeds from the arrangement. It will be mear the start of the document. If you let the IVA fail, the creditors will add back lost interest and possible late payment charges and your debt will be higher than before. They will also then be allowed to enforce collection as they see fit, which could include bankruptcy.

See what CF say about it first -- failure might happen, but don't jump the gun. Get everything in writing and insist that the IP deals with it, not a call handler.
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jane375
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by jane375 » Tue Jul 18, 2017 6:10 pm
Thank you, Foggy, you are so helpful. I still can't find any mention of pensions, whether included or not. It just states " after acquired assets "

If I have a word with CF ( as I know I have to, just scared ) can they just take the money from my bank account anyway ?

Sorry for whinging on, this is all my fault but it's more my daughter I'm worried about and I've made such a mess of everything, when I thought it was a temporary answer to our problems.
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jane375
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by jane375 » Tue Jul 18, 2017 6:12 pm
Sorry, Kallis3, don't understand ?
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Foggy
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by Foggy » Tue Jul 18, 2017 6:17 pm
jane375 wrote:
Thank you, Foggy, you are so helpful. I still can't find any mention of pensions, whether included or not. It just states " after acquired assets "

If I have a word with CF ( as I know I have to, just scared ) can they just take the money from my bank account anyway ?

Sorry for whinging on, this is all my fault but it's more my daughter I'm worried about and I've made such a mess of everything, when I thought it was a temporary answer to our problems.



They cannot take money from your account -- but can demand you transfer it to them, if it comes down to that.
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Foggy
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by Foggy » Tue Jul 18, 2017 6:18 pm
jane375 wrote:
Sorry, Kallis3, don't understand ?



It's an admin thing Jane. You posted a different thread about the same subject, so Kallis joined them together in one place.
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jane375
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by jane375 » Tue Jul 18, 2017 6:51 pm
Hello Foggy, oh, I see with Kallis3, I'm not very good with computers.

The reason I was asking about taking it out of my account is that they take the payments directly from my debit card instead of a standing order.

I think I'll ring tomorrow and ask to speak to the IP. Surely, they wouldn't take all of it, given my circumstances. I know legally they can, but morally ?

Don't know what to do for the best. I'm quite willing to pay a chunk of it, not just all of it !

Once again. many thanks.
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Foggy
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by Foggy » Tue Jul 18, 2017 7:07 pm
As you have lost a chunk of income they could, hopefully, consider this, or some of it, as replacement income over the next year (or however long it would take to make up that sum). If they do decide to take it as a chunk, then due to the decrease in your income you are entitled to ask for a review and a possible decrease in your IVA payments going forward, so it could be as broad as it is long --- it they take sensible approach.
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jane375
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by jane375 » Tue Jul 18, 2017 7:40 pm
I do hope so, Foggy. It's not that I don't want to pay the debt, it just seems under the ruling, a bit harsh to deprive you of ALL your money. I could kick myself for not doublie checking, but hey ho, we live and learn.

I will contact CF and see what they say, fingers crossed.

I will let you know and many thanks for all you help and Kallis and Lulu.
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