Pensions & Bankruptcy.

puddlepuss

Hi. I was declared bankrupt in 1997 & went through all the required procedure with the official receiver, producing a 'statement of affairs' & handing over my personal pension policy as required under bankruptcy law as it applied then. However, I believe the law changed in May 2000 & most bankruptcies petitioned after this date would not be subject to the bankrupt's pension being forfeited to the official receiver? Unfortunately in my case, I received a letter when I reached the age of 55 stating that the official receiver is the 'trustee' of my private pension & intends to realize the 'non-protected rights' lump-sum portion of my pension fund. (Luckily, I stopped paying into the pension when I became bankrupt so the amount the official receiver intends to claim is only about £9000). Five years later having now just turned 60yrs old I am still waiting for them to do this. I have been in full-time employment since 2001 (my bankruptcy having been discharged) & have been contributing to my employers company pension scheme since then. My concern is that the official receiver could also take my current company pension when I finally decide to retire, even though they have already informed me of the amount they intend to take from my old paid up pension? I have also been informed by the [old] pension provider that I could take the protected rights part of the pension now if I wished, even though I am still working full-time. Is this correct? I have heard nothing from the official receiver so is it up to me to contact them & inform them that I intend to do this? I know the obvious answer is to consult a financial adviser but I just thought that there might be someone on the forum who is in a similar situation & has had their pension taken by the official receiver? Any advice would be appreciated!

National_Debtline

Hi puddlepuss

As far as your "new" company pension is concerned, I do not see any way that the Official Receiver can make a claim on this as your contributions to this scheme post-date the bankruptcy, and they therefore do not form part of your bankruptcy estate.

As for the older, "non-protected" pension lump sum, I think you have to let this lie as it remains the OR's to claim. It is odd that they have failed to do so yet but you would leave yourself open to action by the OR were you to withdraw or dispose of that sum in any way now. It may be worth contacting the OR's office so that a line can be drawn under the matter once and for all.

Finally, yes you are correct in stating that for bankruptcy orders made on or after 29 May 2000, a bankrupt's pension funds would not form part of their estate so long as the pension(s) in question was/were approved by HMRC. Fuller details here:

http://www.bis.gov.uk/insolvency/Publications


Hope that helps.

Regards

Dennis @NDL

puddlepuss

Thank you very much for the advice Dennis. As you have suggested, I feel it would be best to contact the OR to determine what their intentions are regarding my private pension, as I am well past the age that they could take the NPR portion. Maybe they have forgotten all about me...:j...
then again perhaps not...:(!!! Thanks again for your reply.