Pension and IVA?

lovetohorde

Guys if you pay out to a pension with your work every month and you attempt or apply to start a IVA... would they request the pension gets stopped or would they be ok with this?

I have an option to start up with my works pension and plan to start a IVA soon so want to know where I would stand in advance, as there wouldnt be any point in beginning the pension if they say I have to stop paying into it.

FoggyBrain_2

I am in a works pension and they accepted me keeping that on as long as I was only paying the basic subscription (any extra payments had to be funded from my other allowances). They might have been happy to leave it as I have been in the scheme for a number of years. To be honest I don't know how they would look on you increasing your outgoings while starting the IVA process.

judojub

Hi. I also pay into my works pension. At my creditors meeting one of the modifications was to just send written proof that I was making the minimum contribution. If I had been paying more then I would have had to reduce this to minimum.
As Foggy said though. I don't know how they would view starting a pension just before application. This is something you would have to discuss with whichever company you choose to go with.

kns_2

My Iva would not let me pay into a pension not even a basic amount:(

bernard828

Generally speaking, if you're employed, creditors will not mind you being in the company pension scheme as long as you're paying no more than you need to to keep the scheme going. They don't like to see massive amounts being squirrelled away but are generally OK with the basic scheme.

In your case the slight wrinkle is that you're entering the pension scheme and the IVA at the same time - the IVA is not meant to be a lifestyle choice, you're doing it to get rid of debt. If it beomces apparent that you're doing both at the same time - and your IP will see your last 3 months' payslips whihc won't currently show the pension scheme on them - then they may raise the question of whether you're committed to the process.

lovetohorde

bernard828 wrote: »

Generally speaking, if you're employed, creditors will not mind you being in the company pension scheme as long as you're paying no more than you need to to keep the scheme going. They don't like to see massive amounts being squirrelled away but are generally OK with the basic scheme.

In your case the slight wrinkle is that you're entering the pension scheme and the IVA at the same time - the IVA is not meant to be a lifestyle choice, you're doing it to get rid of debt. If it beomces apparent that you're doing both at the same time - and your IP will see your last 3 months' payslips whihc won't currently show the pension scheme on them - then they may raise the question of whether you're committed to the process.

Ok thanks mate.

In this case prob start the pension and delay the IVA for 3 months then. I am 31 now so do need to start a pension soon and am just thinking of getting it up and running before I get accepted and start a IVA otherwise I will not be able to start my company pension for minimum of 5 years.

Can I ask how do you show them that your paying the minimum possible? as in what proof do you need? I don't really want my employer knowing I am on a IVA unless I can really help it.

Cheers for help so far guys.

judojub

Hi.
Just a letter from your pensions department should be enough. I just told mine that I was having a bit of a financial overhaul and could they just email me confirmation that I was paying the minimum. The email was accepted by my IP as proof enough.
Some creditors can be funny about the whole pension contribution. It's not like we don't need it! Perhaps you could just give a couple of IVA companies a ring just to ask them where you might stand if you were to opt into the scheme now whilst applying for an IVA. Never hurts to ask.

james32_uk

In my case one of my creditors wanted my pension to be frozen and all ongoing payments added to my IVA but fortunately they were a fairly small share of my creditors and I was able to tell them to get stuffed as I reached my 75% yes votes without them