Question: Will An IVA Affect My Pension?

If you start to take money from your pension pot during the term of the IVA, this will count as income and you may have to pay it into the IVA.

Your insolvency practitioner will advise you on this.

You could choose to cash in some of your pension to raise a lump sum for an IVA.

Does an IVA affect my bank account?

If you do not owe your bank money there is no issue. They will not be informed about your IVA and you can continue using your account throughout the Arrangement.

Does a IVA affect my partner?

Finally, the insolvent partner’s IVA may impact on the other partner’s credit worthiness. The IVA will have addressed any joint debts, with creditors receiving a dividend from the IVA. Nevertheless, many people have successfully completed their IVA without negatively affecting their solvent partner.

Can creditors take my pension?

If you have an arrangement to pay your debts, your creditors may be able to take money from your pension income or lump sums. This includes money or income from: an annuity. any cash from taking your whole pot in one go.

Can I save money while on a IVA?

There is nothing to stop you saving money during an IVA. As long as any savings you make come out of your agreed living expenses budget you are allowed to keep them. You do not have to declare them and they do not have to be paid into your IVA.