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Bankruptcy and your pension
grigby1622
Posts: 5 Forumite
Have just spent lengthy to and froing with the receiver of my bankruptcy of 20 years ago, trying to sort out a pesonal pension I ceased paying into in 1990.
Having turned 60, Abbey Life sent out the application pack for me to receive a lump sum of £2000 plus a yearly pension of around £300. Big deal. The box that said have you ever been bankrupt, after a lot of deliberation, got ticked. (honesty eh?) Apparently, if I hadn't ticked it, everything would have sailed along nicely. To cut a long story short and 5 months later, the OR has decided to withold the pension to pay off some of the outstanding £32k debt. Reeling off some of the creditors, Forward Trust, Midland Bank to name but two, how can the OR pay monies to companies that no longer exist in name! An email to the OR asking that if I held an 'imaginary' private pension that would mature when I become 65, would that also be taken from me to pay off non existent creditors? From the vague answer I received, I think a tick in the box will become a cross. You have been warned. That old pension is theirs, not yours.
Having turned 60, Abbey Life sent out the application pack for me to receive a lump sum of £2000 plus a yearly pension of around £300. Big deal. The box that said have you ever been bankrupt, after a lot of deliberation, got ticked. (honesty eh?) Apparently, if I hadn't ticked it, everything would have sailed along nicely. To cut a long story short and 5 months later, the OR has decided to withold the pension to pay off some of the outstanding £32k debt. Reeling off some of the creditors, Forward Trust, Midland Bank to name but two, how can the OR pay monies to companies that no longer exist in name! An email to the OR asking that if I held an 'imaginary' private pension that would mature when I become 65, would that also be taken from me to pay off non existent creditors? From the vague answer I received, I think a tick in the box will become a cross. You have been warned. That old pension is theirs, not yours.
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Comments
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Most current pensions are covered by the Welfare and reform act (2000 i think) but as you went bankrupt before then it would have been an asset at the time and foreverer until it was dealt with.
with a newer pension that hasn't matured yet, it should be covered by the above act regardless of when it started.
As for the liabilities, not sure about Forward trust, but as midland bank was bought out and changed name rather than the company being liquidated then there is a continuing liabilty up to what the the OR can realise.
Sorry it's not the news you were expecting.Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
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