Pensions and debt recovery

Options
Stevekendal
Stevekendal Posts: 4 Newbie
in Pensions, annuities & retirement planning
I intend to carry on working for the forseeable future. But If I claim my two small private pensions will any old debtors automatically find out and grab any lump sums that might be coming?
«1

Comments

  • tibbles209
    tibbles209 Posts: 169 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Who do you owe money to? Are you not intending on repaying them?
  • System
    System Posts: 178,094 Community Admin
    Photogenic Name Dropper First Post
    Options
    Stevekendal wrote: »
    any old debtors automatically find out and grab any lump sums that might be coming?


    You mean creditors? Debtors are people who owe you money.
  • Stevekendal
    Stevekendal Posts: 4 Newbie
    Options
    Yes, creditors. I was just.meaning would my creditors be notified and then claim the total outstanding, whereas if I didn't take lump sums, just carry on making regular payments?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Options
    Not automatically. How would a pension company know who your creditors are?
  • Stevekendal
    Stevekendal Posts: 4 Newbie
    Options
    I only ask because on the application forms it says that they carry out an id check for purposes of fraud prevention and debt recovery.
  • Silvertabby
    Silvertabby Posts: 9,024 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    I only ask because on the application forms it says that they carry out an id check for purposes of fraud prevention and debt recovery.
    ID check is to ensure that they pay the money to the right person, and not to some scam artist who just happened to find a copy of your pension statement in your bin.

    Debt recovery I'm not sure about - unless it's under the same terms as public sector pensions. They link with the DWP to ensure that the pension income is taken into account when assessing means tested benefits.
  • dunstonh
    dunstonh Posts: 116,387 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    Bankruptcy is the thing they are looking for. Not debt management/reduction plans.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Keep_pedalling
    Keep_pedalling Posts: 16,641 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    dunstonh wrote: »
    Bankruptcy is the thing they are looking for. Not debt management/reduction plans.

    I think they may also look at IVAs, but I also would love to know why the OP does not want to do the honerable thing and pay off their creditors, despite having the means to do so.
  • Alice_Holt
    Alice_Holt Posts: 5,950 Forumite
    First Anniversary Name Dropper First Post
    Options
    Keep_pedalling wrote: »
    I think they may also look at IVAs, but I also would love to know why the OP does not want to do the honourable thing and pay off their creditors, despite having the means to do so.

    Yes (it would need to be reported to the IVA administrator), and also DRO's.

    It would also need to be reported if the OP is in an ongoing debt management plan, as periodic financial updates will be required.

    If the debtor's financial position improves, it is expected that this is then reflected in payments to creditors.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Keep_pedalling
    Keep_pedalling Posts: 16,641 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    Stevekendal wrote: »
    Yes, creditors. I was just.meaning would my creditors be notified and then claim the total outstanding, whereas if I didn't take lump sums, just carry on making regular payments?

    If Steve Kendal is you real name they may already know by now :rotfl:
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards