Tuesday, 11 October 2016

BANKRUPT'S PENSION

You generally lose your assets when the court makes you bankrupt. Personal pensions are an exception. But it was thought that you could effectively be forced to draw capital from your pension  after bankruptcy so that you could make some contribution towards your debts under an income payments order (see Breaking Law at chapter 35). When made, these orders have a  lifetime of three years.

Those made bankrupt can rejoice. The Court of Appeal ruled last Friday that someone made bankrupt could not be forced to draw down payments from a personal pension so that they were in a position to satisfy an income payments order. A previous court case which was decided otherwise was overruled.