shares and pension contributions

Get expert opinion. This is the place for new questions to be posted.
  • 1
  • 2
19 posts Page 1 of 2
barassic
Posts: 12
by barassic » Mon Nov 13, 2017 8:08 pm
Hi

Could anybody advise please. I am in 4th year of iva and have found this forum quite recently. Every month I pay into a pension and also a share scheme. I have never been questioned about pensions or shares even though my payslip clearly states pension deductions. The share deductions may not be as clear though. My question is am I unintentionally doing wrong and should my IP have questioned this at the proposal stage. Do not want my IVA to fail and would willingly hand over my shares if required.
User avatar
Foggy
Forum Expert
Posts: 23905
Contact
by Foggy » Mon Nov 13, 2017 8:23 pm
I am surprised this was not picked up upon and discussed at the outset. The pension should be OK, although creditors often ask that pension contributions be reduced to the scheme minimum. The shares, however, are an asset that should have been liquidated for the benefit of the creditors -- have a look at your proposal and the Chairman's Report to see if these were mentioned -- they might have been excluded.
barassic
Posts: 12
by barassic » Mon Nov 13, 2017 8:46 pm
Hi Foggy. I was never asked about this . The I.P had payslips before starting IVA. As I say , the share contributions are not very clear on my payslip. I would not want my IVA to fail in something I was unaware of. I only ask because of scouring this forum. What would your advice be ?
User avatar
Foggy
Forum Expert
Posts: 23905
Contact
by Foggy » Mon Nov 13, 2017 9:00 pm
barassic wrote:
Hi Foggy. I was never asked about this . The I.P had payslips before starting IVA. As I say , the share contributions are not very clear on my payslip. I would not want my IVA to fail in something I was unaware of. I only ask because of scouring this forum. What would your advice be ?


I am not qualified or licensed to give direct advice, barassic. Some here will, no doubt, suggest you leave it be and tough it out --- but there is always the worry and stress of discovery, plus the fact that if you are found out the IP will be less forgiving than if you come forward yourself. On the other hand it might never be discovered (however, things do have a habit of coming out of the woodwork).
Personally, being a bear with very little nerve, if it were me in this position, I would have a word with the IP and come clean. Being an automatic deduction from pay it is a thing easily overlooked in the general hubub and panic of starting out .
See what other posters have to say before taking the plunge.
barassic
Posts: 12
by barassic » Mon Nov 13, 2017 9:09 pm
Thanks Foggy. I am the same , Hopefully somebody will put their spin on it. Like I say , they have had all my payslips for the last three reviews but have never mentioned it and I was never asked if I had any shares. Thanks again.
barassic
Posts: 12
by barassic » Mon Nov 13, 2017 9:13 pm
Sorry Foggy. Do you think that my IVA could fail over this ? Worried now.
User avatar
Foggy
Forum Expert
Posts: 23905
Contact
by Foggy » Tue Nov 14, 2017 8:04 am
barassic wrote:
Sorry Foggy. Do you think that my IVA could fail over this ? Worried now.



It shouldn't fail over a genuine oversight. I would think you would be given a chance to put matters right, possibly by selling the shares and introducing the revenue into the IVA. This way, at the end of the day, the creditors are no worse off (and, if the shares have done well, might even be a little better off).
User avatar
Lisa Thomas
Industry Expert
Posts: 5996
Contact
by Lisa Thomas » Tue Nov 14, 2017 10:04 am
You would have been asked to disclose all assets - these shares are an asset.

It's not for the IP to guess what assets you have and specifically ask if you own a particular assets - although guidance is usually given in the form of a questionnaire so I'm surprised it wasn't a standard question asked of you at the start.

Strictly speaking you should disclose the omission to your IP but you may want to find out what value the shares have - this may then help you decide whether to disclose it.
User avatar
MerlinL14
Posts: 1147
by MerlinL14 » Tue Nov 14, 2017 2:50 pm
Year 4, not been addressed yet....... :twisted: Personally I would just leave as is and act dumb if it did get discovered. I can understand the worry, but the whole process of an IVA is a worry.
barassic
Posts: 12
by barassic » Tue Nov 14, 2017 3:15 pm
Thank you all. I honestly cannot remember filling in a questionnaire regarding assets. Think it was just a case of an I and E and then the IP or whoever put the proposal together. The shares are worth roughly £1,500. If I did not disclose this and it came to light , what then ? I have not drawn any of these shares whilst in my IVA. Feel like I am in a catch 22 position. Declare and maybe fail IVA or don"t and then comes to light and fail IVA.
User avatar
Lisa Thomas
Industry Expert
Posts: 5996
Contact
by Lisa Thomas » Tue Nov 14, 2017 3:35 pm
If you are found out you are at risk of voiding the IVA as you have not disclosed all your assets.

The IVA proposal would have declared what assets you had - it was up to you to ensure it was accurate.

You could propose a variation to sell the shares and pay the funds into the IVA, which would hopefully get around this.
Last edited by Lisa Thomas on Tue Nov 14, 2017 3:57 pm, edited 1 time in total.
FormerlyST1100
Posts: 19
by FormerlyST1100 » Tue Nov 14, 2017 3:40 pm
If you delcare the shares I doubt very much they will fail it as long as you then cash them in and pay the over.

It depends on how you value honesty in your IVA and the IVA contract you entered into.

With mine, I forgot completely about having an insurance policy that was due to pay out on my 50th birthday (during the IVA) which had been planned to buy a replacement car or motorbike as a birthday present to myself.

The first thing I knew I received a cheque for the amount of around £5000 ... as soon as I got it I contacted my IP (Stepchange) and arranged to pay it over to them ... all they said was thanks for letting them know and paying it over and could I confirm that this was the only thing I had forgotten about.
barassic
Posts: 12
by barassic » Tue Nov 14, 2017 4:24 pm
Hi all, just come off phone to IVA company. Told them of my situation with shares and pension . They say they will not force me to sell my shares and the only time I would need to introduce into IVA is if I received a lump sum or I am receiving a yearly pay out. That's a load off my shoulders. Thank you all again.
User avatar
kallis3
Forum Expert
Posts: 71955
Contact
by kallis3 » Tue Nov 14, 2017 4:50 pm
Glad it's worked out for you.
barassic
Posts: 12
by barassic » Tue Nov 14, 2017 4:56 pm
Thanks Kallis
  • 1
  • 2
19 posts Page 1 of 2
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 12 guests