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T O P I C R E V I E W
Trish Maley
Posted - 15 June 2012 : 12:08:45 I stopped working in February 2009 because of ill-health and have been receiving IB and IS (recently changed over to ESA - Support Group). I have debts totalling just over £21,000, which I was paying off with a debt repayment plan with CCCS until December 2010 when I was advised that bankruptcy would be the best route for me. Since then I have been paying my creditors a minimal amount and attempting (unsuccessfully) to save the court fee to declare bankruptcy. Two months ago I applied to my occupational pension fund (Local Government Pension Scheme) to have my pension benefits paid early on the grounds of ill-health. I had to see their medical advisor, who has subsequently submitted a report confirming that I am permanently incapable of employment for reasons of permanent ill-health. I have chosen to take the maximum lump-sum payment (amounting to £+- £5,000) with an annual pension of £781.01. Obviously, I am going to use some of this money to go to court to declare bankruptcy and I want to know what happens with both my lump sum and annual pension. I have read many threads on the forum but am still not sure if this money can be included as assets in my application.
I would be very grateful for any advice.
1 L A T E S T R E P L I E S (Newest First)
Viki.W
Posted - 16 June 2012 : 17:24:10 Hi Trish,
If you declare bankruptcy then the lump sum will be at risk.
Your annual pension will be used when calculating a possible income payment agreement.
Please speak to an expert for advice regarding your situation.
