IVA or individual voluntary arrangement is a formal repayment that may affect your financial situation in long term. One question commonly asked by debtors before enrolling in IVA terms is related to pension scheme. People want to know if enrolling in this formal repayment plan can affect their state pension payments or any money that they are already getting as pension fund. You must know that if you are getting private or state pension payment or can get pension in future then it is going to be affected.
Pension scheme payment is not bind in any fixed rule. It depends upon your age and other circumstances that affect pension payments. In general situation, you will need to make payments during IVA if you are paying for employer pension scheme. However, amount that you paid is more than minimum allowable payment then it is excluded from such rules. In that situation, amount can be reduced to minimum allowable payment.
In [b]IVA[/b] repayment terms, size of monthly payments depends upon your monthly payments and necessary expenses. If you are receiving money in any pension scheme then it will be considered as your income and further will be taken into account while setting up IVA terms and repayment. If you start to receive pension payment in midterm of IVA then it is expected from you to inform about this to Insolvency Practitioner. In any such situation, you will need to increase your IVA payments. Increase of amount will depend upon the change of amount in your income. You should also inform to IP if there is change in your expenditure. If there is according change in both income and expenses there you will not asked to increase your monthly payment.
These are some important information for pension holders. It is good idea to get full information about any such things before enrolling into any repayment plan.
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