Bankruptcy and pension questions

whichwhydoIturn

Hello,Ive got a date for my BR this month .
I'm in my early 50's
I have a pension that I've held from a previous employer I paid in for 16 years , and I'm in my current employee pension scheme.
I've asked stepchangeabout these , are they assets however, I wasn't really sure what I've written as I was trying to write and listen and my head is swimming with things at the moment .
Can some one explain please ?
Thank you

droiderm

As far as I am aware your pension can't be touched

Carlos1981

Not sure if correct but I was told pensions do not count assets as long as they are hmrc approved.

Hope I am as pay into my teachers pension and just gone BR

whichwhydoIturn

I don't know if I'll get through until the date
I feel sick constantly .
One of my colleagues left work today and he hugged me and I burst into tears , must be the thinking I'm doing
How do you keep busy until you got into court ?

Carlos1981

Think of the positives!! I was paying 850 per month minimum payments and a loan. This was more than my mortgage leaving me and family with no money left. Therefore BR was best choice. Now more money for family which is what counts in my life.

My thinking was cant be any worse than things are now. What's the worst that can happen to you?!
Sacked from work- not going to happen
Lose house- in negative equity but no payments missed. Worst case we have to sell so will rent a bigger house for same price

Some people might disagree with my way of thinking but BR could be the best thing to happen to you. That's the way I looked at it. No one will find out if you keep quiet about it and who cares if they do!!!

whichwhydoIturn

Well I rent and am here until owner wants to sell
It's a pension for her
My job is safe I've checked on the QT
I live round the corner from work , so no commuting .
My biggest worry is I've had such a bad time before my marriage broke up for 8 years then the last 6 years 5 on a DMP 1 year in an IVA
It's debt that was run up whilst married
I've never had many carefree days
My DD , youngest , 33 is getting married next September and she had a cancer scare two years ago just makes me realise how much I've struggled on , not taking this lightly .
Family Carlos IS what life's all about you're right x

Carlos1981

Good luck. A fresh start is definitely the way forward.

antrobus

droiderm wrote: »

As far as I am aware your pension can't be touched

Carlos1981 wrote: »

Not sure if correct but I was told pensions do not count assets as long as they are hmrc approved....

The Welfare Reform and Pensions Act 1999 introduced statutory protection for 'approved pension arrangements'.

BUT

In Raithatha v Williamson (2012) it was held that a bankrupt could be forced to take their pension benefits if able to do so - i.e. if you are 55, have a personal pension, and therefore could 'retire' and start taking your pension, the trustee in bankruptcy can extract what you would have received out of your pension fund.

See explanation here
http://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0319

The case was appealed, but the original decision was upheld in December last year. See http://www.dwf.co.uk/insight/view-point/banking-and-finance-raithatha-v-williamson-appeal-vacated

whichwhydoIturn

My pension is work pension ... And so is my current pension I'm paying into
I don't pay into a AVC .
I m bit worried now

alastairq

Hi.....AFAIK.....only a pension which could currently betaken [as early retirement]...and falls outside of those pensions the IS cannot touch [as above?]...can be retrieved by the OR.

If the pension is fairly insignificant anyway....and you are not yet at the minimum 'early-retirement' age for that pension..it should be fine.

[Neither a previous pension, nor my current one, were able to be touched by the OR...]

I suggest you sit back and cease worrying about it.

You do not need to wait until your day-in-Court to start afresh with a 'new life'.....

You could start from the very moment you decided to petition BR yourself.

SO...start now!

There is nothing about your [current?] debts which need be of concern to you now.

Start organising you life now...without thought for the creditors.....then the petition itself simply becomes a part of the process.

Most of the dark fears prior to bankruptcy probably come from not being fully knowledgeable about the process, and what happens.

The 'uncertainty?'

A bit like divorce?

There is so much myth which surrounds the process ..no wonder the lawyers make such a good living out of it? [I've undergone 3.....two of which were DIY jobbies...the first one, I didn't know any better!]


Don't worry too much about the older pension...most likely it will come to nought as far as the OR is concerned...but......even if it doesn't......does it really matter to you?

What, in effect, will you have 'lost?'

How would its loss affect your current, and near-future day-to-day life?


A lot can happen between now, and when you finally decide you have had enough of a job .....or you don't like it any more.

Tank1959

I am registered disabled, my wife is my full time carer,
we get DLA, Carers allowance and ESA.
I get £129 a month pension that is DEDUCTED from the ESA so we dont receive any more than the Government state we are entitled to exist on.

The Insolvency people now want this £129 for the next 36 months! They say we have more than enough to live on!
Also we will lose housing benefit in April due to the bedroom tax, even though my illness and disability stops us sharing a bedroom!
Happy Days