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John Curtis
John Curtis January 28, 2012 15:21

IVA v pension lump sum and income

I have the opportunity to take my pension now (aged 50) which will include a lump sum. Will this affect my IVA? (in 3rd year).
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  • Sally Hardiman EMPLOYEE
    Sally Hardiman (Official Rep) January 30, 2012 16:19
    Hello John,

    I have spoken with the IVA supervisory team about your question and they have advised me that a pension lump sum is classed as a windfall. As such 100% of it will be expected to be paid into your IVA for your creditors.

    If the lump sum is higher than the amount owed, following a full assessment, you will be expected to pay 100% of your debt plus fees and interest, therefore completing your IVA. Any surplus from this you can keep.

    If the value of the lump sum is less than the amount owed and the IVA is not concluded, a full review will be conducted on your circumstances to see how your IVA contributions have been affected. This may result in a reduction in monthly contributions.

    It is possible that a clause was written into your IVA proposal regarding pension lump sums if it was expected within the term of your IVA; this may indicate another way of dealing with it. I suggest that you call your Supervisor to check your proposal and chairman’s report.

    I hope that this answer has helped.

    Sally
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    good answer! good answer! (undo)
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