???? Br and pension

dunker1

Hi guys....a brief summary: considering br very soon as at level of debt that i will never be able to pay back(£37,000),still have v good rating as never missed payments and still have more credit available if i wanted it,but have reached the stage that i should have come to earlier,am on benefits now so you can imagine how the outgoings each month exceed what i receive.Anyway to my main point which is what will happen to my private pension which i pay into every month ?,it is only valued at about £15,000,is this affected by br and if not can i carry on paying into it from a new bank account after my barclays account is frozen. Any help from you knowledgeable guys would be much appreciated.I have more questions but will save them for another time,thanks.

Richard_S

dunker1 wrote: »

Hi guys....a brief summary: considering br very soon as at level of debt that i will never be able to pay back(£37,000),still have v good rating as never missed payments and still have more credit available if i wanted it,but have reached the stage that i should have come to earlier,am on benefits now so you can imagine how the outgoings each month exceed what i receive.Anyway to my main point which is what will happen to my private pension which i pay into every month ?,it is only valued at about £15,000,is this affected by br and if not can i carry on paying into it from a new bank account after my barclays account is frozen. Any help from you knowledgeable guys would be much appreciated.I have more questions but will save them for another time,thanks.

Hi dunker,

We have a pension with a reasonably sized balance and the O.R had no interest in it at all. The legislation is a little complex and there is no problem with most pensions but I can't remember exactly what the criteria is for the O.R being able to realise the funds in it. I seem to think it has something to do with whether they were recognised schemes under some government legislation in the late eighties or early nineties.

If you go to the Insolvency Service web site I think it's covered there. You should make an appointment with one of the debt charities, CCCS, CAB etc and they'll be able to tell you exactly what the position is. You may have difficulty justifying paying into it while you're undischarged but there shouldn't be a problem with suspending payments for a year or so.

Of course, the exception to this is if you have been paying unusually large amounts into your pension fund in the months / year before bankruptcy as a means of "frustrating yr creditors".

Hope that helps,

Richard

Bollinge

Relatively recent legislation means that modest pension funds like yours are not at risk during bankruptcy any more.

The government realised that if they snatched your pension off you now, you would not be able to be taxed when you retire, and moreover might end up claiming benefits off them!

jules23958

yep - believe that since 2001 anyone going bankrupt after that date does not have their pension touched. My question is does that include both state pension AND company pension or just the former?