lump sum from pension

smith1959

I am looking at an IVA. I have a car on HP which I have been told I can give back and any shortfall can form part of the IVA.Would it be OK to take a lump sum from my pension before the IVA is started to give to my wife so she can by a car?

Charco_2

Noooooooooooooo!

That would be classed as a transaction at undervalue and your creditors would demand that it be taken back and divied up for the benefit of your IVA.

A better way around would be to keep the car HP and propose the IVA with whatever surplus you can offer... But state that, if it would be acceptable to your creditors, you would also propose to draw down a few £x,000 from your pension to wipe off the HP debt and keep the car for your wife to use - the money saved then each month from not paying your car HP can be put towards your IVA.

***I am assuming from your log-in name that you were born in 1959 making you 50 years old - hope i'm not splashing out too many of your secrets - which means you can draw down from your pension.... UNTIL 6TH APRIL 2010!!! There are changes afoot to bring the age limit up to 55 from that date on!!!***