Britons have been told not to worry that they could lose their pensions when setting up Individual Voluntary Arrangements (IVAs).
Accountancy Age explains that funds which have been placed into pensions are typically not taken into account when determining the schedule of repayments involved in new IVAs.
However, funds which are accessible are included in the calculations for some of the alternative forms of tackling finances - such as the new Debt Relief Orders (DROs).
DROs are available only to people whose total assets fall beneath a £300 threshold, but some pensions can count towards this figure.
An Insolvency Service spokesperson tells Accountancy Age: "If an individual has assets of value - such as a pension they can access - this could take them over the threshold."
IVAs offer an alternative to bankruptcy for people who do have assets and can safeguard the ownership of the family home by allowing equity to be released from it, rather than forcing it to be sold.
