Pension payout claimed 22 years after discharge

love_summer

Hope someone can advise me. My dad was discharged from bankruptcy in 1993. At that time a PPP he had with Prudential was frozen and has not been paid into ever since. A few months ago dad found the policy and was told that now he had turned 60 he could claim around a £4,000 pay-out. The forms were completed and he had to declare whether he had been bankrupt and duly gave details. He has now had a letter saying that the insolvency still have an interest in this pay-out even though the amount exceeds the original amount he went bankrupt for. I thought that once a bankrupt was discharged that there were no further claims on income. I'm not very switched on with all this stuff so any advice would be welcomed.

debt_doctor

Hi,


Bankruptcies prior to 29th May 2000 included pensions as an asset. There are still many cases where these pensions are claimed for a prior 2000 bankruptcy when the bankrupt reaches the earliest pay out age.
I'm afraid the pension is an asset, although I'm not sure if some low value exemption applies. The agent employed to collect should give you this information.
DD

geoff2

I'm in a similar situation. Was made bankrupt in 1991 and discharged 1994. However, I set up a new personal pension about 5 years ago. Can the receiver still claim an interest in this pension when I decide to realise it, considering that it wasn't an asset in 1991?

fermi

Not as far as I am aware, as it is something wholly new taken out after you were discharged and so cannot be classed as an asset of your old bankruptcy estate.

geoff2

Many thanks for your prompt reply.

love_summer

Thank you for your response. So you're saying I should contact the prudential and ask about a low value exemption?

debt_doctor

It is the Insolvency Service / Trustee you need to apply to - Not the Prudential.
I have been doing some further research and it appears that only pension values of less than £500 will not be claimed, so the whole £4000 will be taken as an asset, however, there is a provision for 'buying back the pension' for 45% of its value from the OR / Trustee.


You would need to contact the or/ trustee or their agent to discuss - also would need to take pensions advice on how to claim the pension and what would be taxable and what isn't.


DD