www.iva.co.uk

hiya all,
just had a call from my ip and was told that if my iva was to procee, i would have to reduce my pension payments to £50 per month. i currently pay £117 which is based on my salary. it seems unfair to be penalised for something that i wont be using until i retire for another 30 years!! or the other option would be to stop paying at altogether which i dont want to do.

rt

I suppose this is just a fact of life. At the end of the day, you have to pay as much back to your creditors as possible, and that will probably mean reducing your pension contributions. I don't know what the other people think, but perhaps you are quite lucky to be allowed to continue to pay £50 per month.

Look at it another way, once your IVA has finished, you will be saving upwards of £200pm by not making your monthly contributions. The £67/month you are not contributing now could be made up then without too much trouble, and within a reasonably quick period of time I would imagine.

Make sure that your IP reads the terms of that modification carefully and challenges the creditor. We often do this quite successfully, as they tend to accept occupational pensions at the agreed contractual rate. Personal pensions are generally disallowed.

At the end of the day, if you have 30 years to go until retirement, you have ample time to make up the lost payments from your surplus income once the IVA has concluded.