State Pension & Bankruptcy

See_Quest_Station · 15 June 2019 at 2:47PM

Hi,

In the process of Bankruptcy in Scotland (sequestration) and drawing up a household budget for the AIB application. At the moment my only income is a state pension. Will I still be required to hand over any surplus income to creditors. There won't be much but Mr Google is giving mixed advise about whether state pension surplus is considered as a part of the creditors to feast on ? Anyone on a pension and going through this ?

broaps · 15 June 2019 at 3:29PM

I don't know about the Scottish system but in England the state pension is counted as benefit so if that is your only income you will not have to pay an IPA. That is my situation and the OR said I would not have to pay anything. Hope this helps.

If you also have a private pension, the state pension is included as part of your overall income so you could then have to pay an IPA.

See_Quest_Station · 15 June 2019 at 9:29PM

Thanks for your response. The only other income I get is an annuity its not exactly a pension and it pays out a paltry £800 annually in April... Wondering if this will impact ?

broaps · 15 June 2019 at 11:21PM

As I said earlier I can only speak for England, but an annuity is a type of private pension and here that would definitely be added to your state pension and the £800 equally spread throughout the year to calculate if there is a surplus to pay towards your debts. The important question is always how much you have left when all your reasonable expenses are taken into account and if there is £20 or more per month the OR will claim it. You may find the £800 will have to be paid over but make sure you claim as much in expenses as necessary so you do not struggle to live. It may be helpful if you could post your household budget here so we may be able to make suggestions to give you the best chance.

See_Quest_Station · 16 June 2019 at 12:09PM

Thanks again. Good to have found someone who knows what they are talking about. I now have a better understanding of the state pension coupled with an annuity. Clearly the latter is letting us down for such a small sum. Also its only paid once a year ! Cant seem to find a way to attach my household budget to the post ? Would have welcomed any comments Regards David & Beverley

elljay · 17 June 2019 at 10:51AM

http://www.stoozing.com/calculator/soa.php

That's one,I think there are others - if you click on MSE in the 'format results for discussion boards' bit it will sort it into a format that you can add on here.

EJ

luvchocolate · 17 June 2019 at 5:13PM

Your state pension needs to be listed under benefits as does any other benefits you receive. Your annuity goes under income.
Do you not pay any council tax?
You have nothing in for contents insurance?

State Pension & Bankruptcy

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