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Colin.s
Starting Member
United Kingdom
2 Posts |
 Posted - 02 September 2010 : 19:14:18
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I am about to be medically retired from the Fire service due to ill health, I might have to file for bankruptcy before this happens,my fire service pension is HMRC approved, will bankruptcy affect any lump sum or monthly income i recieve from my pension,
many thanks, |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 03 September 2010 : 09:30:13
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Any income that you have will be assessed as your salary would be. If you have more than £100 left over each month after rent, bills, etc. have been paid then you would have to pay a percentage of this (between 50% and 70%) as an IPA.
If you receive a lump sum and then declare BR shortly afterwards the OR would take most/all of this and use it to pay your creditors. If you took the lump sum and used it for something other than paying your creditors and then declared BR you could have problems explaining to the OR why the money wasn't used to pay your creditors when you knew that you were probably going to have to declare BR. |
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Colin.s
Starting Member
United Kingdom
2 Posts |
Posted - 07 September 2010 : 18:33:24
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I was told by the fire service legal team that any pension including lump sum would be exempt from a bankruptcy order as it is HMRC approved and is protected, can you please advise,
Thank You again, |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 07 September 2010 : 20:45:33
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Hi Colin, I have changed your username to protect your anonymity.
I'm sorry I can't answer your question, but hopefully one of the experts will be able to help you shortly.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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debtinfo
forum expert
2826 Posts |
Posted - 08 September 2010 : 00:38:43
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| GOOD is correct, AS are you to a point, the pension is exempt, but as soon as it pays out it is no longer a pension and is now a cash asset which is not exempt |
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I am about to be medically retired
