Pension and DRO.

ThunderHoof

Hi, I have a question about debt relief orders and pensions. If I am paying the normal rate towards my company pension and this brings me below the £75 a month threshold for claiming a DRO, would I be expected to stop paying towards my pension?

sourcrates

Any payment to a pension should come out of your budget.

It would not be wise to stop paying it, I`m not really understanding your question, if your just over the £75 threshold, then cut something else from the budget.

It only has to show your under the £75 on paper, your not checked up on, your actual month to month budget may be different.

fatbelly

ThunderHoof said:

Hi, I have a question about debt relief orders and pensions. If I am paying the normal rate towards my company pension and this brings me below the £75 a month threshold for claiming a DRO, would I be expected to stop paying towards my pension?

The answer's no.

There's a concept of excessive pension contribution (which isn't you anyway) in bankruptcy but the DRO  guidance is silent on it.

ThunderHoof

Thanks very much, then I should probably start contributing to my pension again just in case the creditors won't play ball and freeze the interest, it would give me a DRO as an additional option.

fatbelly

Yes, there are good reasons why you should be making normal pension contributions

ThunderHoof

fatbelly said:

Yes, there are good reasons why you should be making normal pension contributions

My employer allows me to make additional pension contributions into the main scheme, and also additional voluntary contributions via a shared cost AVC, would paying extra be frowned upon if applying for a DRO?

fatbelly

Tactically, just make normal contributions during the moratorium. If you are showing just over £75 surplus it may be safer to put the food budget up, or utilities given that they will be rising in October.

ThunderHoof

Thanks, sounds like a plan, I'm on a fixed rate but I may put the DD up anyway in winter.