Loan from Pension fund

donjan

Hi,
I'm currently an undischarged bankrupt but will be fully discharged by the year end. I have a pension drawdown fund worth approx £55,000 and I understand that from April 2015 I will be able to cash in the full amount which is what I intend to do. (I'm now 65 and receiving state pension on top of a private pension which gives me sufficient income without having to use my income drawdown plan).

However I really could do with cash now - ideally £10,000 but £5k would be ok. Is there any way I could borrow against my pension fund, for example from a private investor or from a peer -to- peer lender?

Any help or advice would be greatly welcomed.

Tixy

Under normal circumstances some lenders will allow bridging loans against a pension fund.

But possibly not for as little as £10k. More relevant I would be very surprised if you found any lender willing to offer you a bridging loan or any loan whilst undischarged.

Daniel54

donjan wrote: »

Hi,
I'm currently an undischarged bankrupt but will be fully discharged by the year end. I have a pension drawdown fund worth approx £55,000 and I understand that from April 2015 I will be able to cash in the full amount which is what I intend to do. (I'm now 65 and receiving state pension on top of a private pension which gives me sufficient income without having to use my income drawdown plan).
.

Do bear in mind that after you have taken 25% tax free,the remainder will be subject to income tax when you draw it down.Strongly suggest you avoid having total taxable income above the higher rate tax limit in any one tax year,which will mean drawing down over at leat 2 tax years ( will depend on what income you have from your state and private pensions)

jonesMUFCforever

As a bankrupt the answer is definitely NO.