Bankruptcy and pensions update

Since writing my previous article, there has been a further development concerning the impact of bankruptcy on personal pensions plan, particularly due to the recent case of Horton v Henry.

In this case, the Judge considered whether a Trustee in Bankruptcy could obtain an Income Payments Order when no decision had been made by the bankrupt to draw his pension prior to the making of the Bankruptcy Order.

Here, the bankrupt had numerous pension policies, which he was entitled to crystallise, but had not chosen to do so. The Judge held that a bankrupt could only become entitled to a payment under his pension after definite amounts had become contractually payable.

As detailed in my previous article, a Trustee could treat these amounts as income for the purpose of obtaining an Income Payments Order. However, the Judge was of the opinion that, until such time that the bankrupt chooses between the various ways in which the pension benefits could be taken, there would be no entitlement to any payments against which an Income Payments Order could be made.

This has since been appealed and a hearing is expected to take place towards the end of May 2015. I will of course provide a further update as soon as a judgement has been made.

Back to all news
Get in touch
Thank you for your getting in touch with us, a member of our team will be in touch shortly.
Something went wrong while submitting the form, please get in touch with us using the phone number above to deal with your enquiry.
Operating nationwide throughout the UK

At Frost Group, we want to make things as easy as possible for you. That is why, if you can’t come to us, we’ll come to you. We operate face to face, nationwide meetings, wherever is most convenient for you.

bromley

Clockwise, Old Town Hall
30 Tweedy Road
Bromley BR1 3FE

Leicestershire

Court House,
Old Police Station South Street,
Ashby de la Zouch LE65 1BR

London

86-90 Paul Street
London
EC2A 4NE

Proud members of

Authorised by

Frost Group Limited is authorised by the Financial Conduct Authority. Authorisation number 669247.