- Thursday, 4 June 2009An
IVA debt solution should still be available to people who have pensions set up, reports Accountancy Age.
The publication explains that, when setting up an IVA, pensions are not considered to be assets - and therefore do not impact on the amount which must be repaid to creditors.
As such, an
IVA debt solution could be an option for people who wish to regain their financial footing without impacting on their retirement fund.
However, the same is not true with some other methods of debt resolution, such as the recently introduced Debt Relief Orders (DROs).
Accessible pension funds do count towards a person's assets where these are concerned - with anything above £300 potentially making DROs inaccessible.
Speaking to Accountancy Age, an Insolvency Service spokesperson says: "If an individual has assets of value - such as a pension they can access - this could take them over the [£300] threshold."
By setting up an IVA, those with assets such as a house or car can protect their belongings, with equity release an alternative to forced sale in order to put some of the value of a home towards clearing debts.
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