Took Cash Out Option for Pension
I experienced sudden job loss last year. Now working again at much lower income. During my 5 months of no job, I used credit and took a cash option (~12k) on my former employment pension plan to keep bills current. This has finally caught up to me and I can no longer sustain – so will be speaking to a trustee about a CP.
My question is if the pension payout I took will be a major factor in my CP being accepted or the payment? The money is long gone so its not sitting somewhere to just pay out of pocket.
Posted from: Ontario
Your trustee will ask for an accounting of “what you did with the money”. If it was used to make payments to your creditors then it will not have any impact on your proposal. If it was used for non-essential things (say a trip, or new appliances, or to pay back family and friends) it may have an impact of how much you have to offer to repay your creditors in your proposal.