What If A Pension Paid Out During B/R?

script

I’m sure this has been answered before – and I tried to look at previous posts.

But I have a “dial up” Internet connection – which is sooo slow.

Chances are I would be discharged from B/R before I found the post I’m looking for.

Anyway…

If a pension pays out during your B/R – and you get a lump sum – is this taken by the OR?

And if that was to happen –

I’m guessing it would make sense to “change” your pension to - no lump some but just an income.

This might result in an IPA – due to any surplus income.

But if the OR was to “see” that you had “altered” your pension arrangements – i.e. no lump sum.

Could the OR suggest that you had deliberately “moved” an asset?

philnicandamy

all depends on if the OR took an interest in the pension in the 1st place

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/pension.pdf

script

Thanks Phil,

That Insolvency Service leaflet is very helpful.

It doesn't mention a lump sum (at least I couldn't see it mentioned).


Lets say the pension is HMRC approved. And the OR has no interest in it.

Would a lump sum be taken by the OR during B/R?

And if you did change the pension not to get a lump sum during B/R - would you be breaking any rules?

tigerfeet2006

As far as I am aware yes, the lump sum goes to the OR.

jasper00_2

I listed my pension (£700. Only paid into it for ten months, lol) as an asset when I went BR back in Sept.
OR wrote to me saying he has no interest in it, but if it were to reach maturity during my BE (unlikely, I'm in my 20s) then it would form part of my estate and would be taken by OR.
Hope that helps.

debtinfo

Most pensions are exempt from bankruptcy, This means that the OR only takes an interest when it is paid to you as it become a monatary asset and therfore is no longer a pension. This means that if you get a lumpsum then it will be taken. but als means that yu can change the terms of receipt whilst it is still a pension (and so exempt), to something that benefits you like all monthly payments

script

Thanks everyone.

confused76

also whether you take a pension, or a reduced pension plus lump sum is your choice anyway, you can't get in trouble for choosing not to have the lump sum