early pension v debt / benafits (disabled)

jrc2010

Hi, was looking for some advise.

My mum and dad are both disabled and live in a council house and get by on benafits and disability payments

Before they became disabled they morgaged a house, but due to illness the house was repossed.

They still owe the outstanding amount for the house and pay a minal fee of around £1.00 per month and have a few other debts paying simular amounts.

When my dad was working he paid into his works pension. They have recentley been in touch and one of the options open to him is to take an early lump sum then a monthley amount.

If he took the lump sum and the minimal monthley payment. A)would they loose any of their benfits and would they be chased by creditors for payment from their lumpsum ?

Would appreciate any help.

[Deleted User]

It would help to know which benefits they are receiving,however for any means tested benefits a sum above £6000 may reduce those and a sum over £16,000 would mean they would stop,as for the debts if they are in a voluntary agreement then i assume that every 6 months they are asked for details of their assets and incomes,they would have to declare additional income and probably a lump sum as well.
It could be that if your dad is under retirement age they would be better off NOT taking the pension/lump sum yet,but tbh they would need to get advice on this.