forfeiture clause

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Yet_another_lost_soul
Yet_another_lost_soul Posts: 14 Forumite
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in Bankruptcy & living with it
I was made bankrupt in 1995 and will turn 65 soon. I have found out that I was never discharged and that it was held open "indefinitely" according to the Insolvency register. I have no idea of, nor can I recall, of the reason. I have also found out that I have a works pension due which could pay out 18k tax free. The pension is a defined benefit and has a forfeiture clause. All of this I have found out in the last few days so there are letters and E-mails crossing all over.

To to my querry.. The pension documentation states that payment is at their discretion! (i) Is it therefore normal that they would just keep the money i.e. I don't get it nor does the OR
(ii) they normally pay out and the OR can take what he needs / wants.

It was not for a huge amount (still more then I had at the time) so there is a slight chance that 18k could pay it off and leave change.
I do understand that without exact numbers details an exact answer can not be given but is it 99% certain the pension fund will just keep it and the monthly payout, 25% chance the OR will take 15k and leave me 3k ? Any ideas as I am in a vacuum of facts at the moment and can not think of anything else. Even an inform guess is better then nothing
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  • Minkym00
    Minkym00 Posts: 770 Forumite
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    You've been subject to an SOD. This means that the OR applied to court to keep your bankruptcy in place (suspension of discharge) because you didn't surrender to proceedings in 1995. Presumably the pension company has done a bankruptcy check before paying out?


    Unfortunately all HMRC approved pensions in cases made on a petition presented after May 2000 are excluded from the bankrupt’s estate. As your petition was 1995 then this INCLUDED and therefore is claimable by the OR.


    If your bankruptcy debt was £15k and there is £18k payable then don't expect any change as the OR charges fees that will swallow up the rest.


    Your best bet is to call the office number attached to your case list on the insolvency register as ask them.
  • broaps
    broaps Posts: 97 Forumite
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    It might be worth checking how your company pension works. For example, when my husband retired he had the option of taking a reduced lump sum in exchange for an increased pension. If this option is available then don't take the lump sum. I think most company pensions say the payment is at their discretion but I think they only exercise it in the case of misconduct or similar.
  • Yet_another_lost_soul
    Yet_another_lost_soul Posts: 14 Forumite
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    Nothing solid heard as of yet. Guess these wheels will turn real slow. One minute I am thinking I will have more then just my state pension to live on and a few grand as well. It was a shock to find after 20 years it is still on going. Will keep you all posted if and when I get a better idea of whats going on.
  • Kentish_Dave
    Kentish_Dave Posts: 842 Forumite
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    What happened during bankruptcy to leave things like this?
  • Yet_another_lost_soul
    Yet_another_lost_soul Posts: 14 Forumite
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    Sorry for the tardy response, I have just seen post No. 5.
    As to what happened... I have no idea. I know I filled in a whole load of paperwork but that is it. I was in a very bad place in my head at the time. I was widowed with two young kids, self employed and feeling suicidal most of the time. I have no paperwork or anything but I can see my address has changed on the Insolvency register so I must have kept in touch after 1996. Surely they would have said something if there was action required on my behalf..
  • Yet_another_lost_soul
    Yet_another_lost_soul Posts: 14 Forumite
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    Done some more digging and I can find a Notice of Intended Dividends from 2000 so something must have happened after the court date but no notice of actual dividends. Is this normal.

    I know that it may seem like I am making this up but other then been given the email address of my local OR by London head office ( and I did make contact) I have heard nothing back. O.K. its only been a week or so but a week in the dark is a long time.

    Surely if they are ready to publish "Dividends" the paperwork must have been in order???
  • Kentish_Dave
    Kentish_Dave Posts: 842 Forumite
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    I have no idea on the timing but it sounds like you need to contact the office of the OR and find out what the story is.
  • Yet_another_lost_soul
    Yet_another_lost_soul Posts: 14 Forumite
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    update
    have phoned the Local OR office and twice been told they are looking at it. No action or contact on their part so far. Wonder if I should ask to pension people to pay me, or pass it on to someone else, having given them the case details and hope it provokes a response. Understand that if I can not be paid then it could be paid to someone else. i.e. my (adult) daughter.
  • JCS1
    JCS1 Posts: 5,289 Forumite
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    They will probably have to get the files back from archive, so it may take a while.
  • Yet_another_lost_soul
    Yet_another_lost_soul Posts: 14 Forumite
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    update to keep thread open
    Still no info coming back from the OR. Wonder if as no funds to claim no rush to action it !!
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