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laurent
Starting Member
3 Posts |
 Posted - 10 October 2008 : 09:11:02
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| I owe about 50,000 on credit cards and loans and am living abroad - I have no assets in the UK - would going bankrupt be advisable and would it affect my pension or teachers pension scheme accrued benefits? thankyou |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 10 October 2008 : 12:07:33
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Welcome Laurent to our forum
I am not 100% sure on the answer to this but i would have said no thats if your not about to claim them or are already claiming them.
Some pensions are exempt but i cant remember which they are.
Maybe one of the others can give me a hand on this.
Best of luck
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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laurent
Starting Member
3 Posts |
Posted - 12 October 2008 : 18:51:46
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Hi there,
can anyone else give me an answer please
many thanks
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 12 October 2008 : 19:14:49
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Hi Laurent
I just found this i dont know if it will help at all:
Bankruptcy and Pensions
In bankruptcy, you may lose some of your pension capital and have to make payments from pension income towards your debts.
There are four types of pension you may have already or could receive in the future:
State Pension
Occupational Pension
- Contributions may have been made by the employer, the employee, or both.
Personal Pension.
Group Personal Pension - Payments are made to a pension provider, often on favourable terms negotiated by a employer/ trade association or union. In bankruptcy these are treated in the same way as other personal pensions.
Will I loose some of my pension?
State pensions or any payments from the State Second Pension (S2P) scheme are never impacted by Bankruptcy proceedings.
The Welfare Reform and Pensions Act 1999 states that where a bankruptcy order was made on a bankruptcy petition which was presented on or after 29th May 2000, all pension schemes (Occupational or Private) which have been approved by HM Revenue and Customs do not form part of a bankrupt's estate and therefore cannot be claimed by the Trustee in bankruptcy.
This refers to the pension as an asset, not income from the pension.
Approved pension schemes defined as:
Those registered under section 153 of the Finance Act 2004 (meaning, schemes registered by HM Revenue and Customs plus annuity contracts used to secure benefits under a registered pension scheme which do not provide for immediate payment of benefits)
Retirement annuity contracts.
Those approved by the HM Revenue and Customs for tax purposes;
Stakeholder pensions.
Unapproved pension schemes
Unapproved pension scheme can possibly be excluded from a bankruptcy estate by applying to court for an exclusion order or by making a qualifying agreement with the Official Receiver.
Pensions included in a Bankruptcy estate.
When a pension policy is included in a bankruptcy estate, the official receiver can claim the lump sum and the regular payments. This can also be after discharge from bankruptcy. It may be possible to buy back part or all of the pension policy at a later time.
Income from Pensions during Bankruptcy
If you receive a regular income from a pension and/or a lump sum during bankruptcy, then this may be subject to an income payment order or income payment agreement.
You may apply to the court to for an exclusion order or make an qualifying agreement with the Trustee that this should be excluded. As in the case of unapproved pension schemes, your current and future needs and that of your family/dependants are considered.
The qualifying agreement can be revoked by the Trustee if you are found to fail to disclose relevant details that would have altered the decision made on the agreement.
You make apply to the court for an exclusion order:-
Within 13 weeks of the appointment of the Trustee
OR
within 30 day of the revoke of a qualifying agreement.
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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laurent
Starting Member
3 Posts |
Posted - 17 October 2008 : 08:06:08
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Hi Jo,
Thank you so much for all that info. So does this mean that my state pension would not be affected and my Teaachers Pension which is an occupational pension may be affected?I am 55 now and would not receive state pension until I am 65 but my occupational pension when I am 60. If all the proceeedings were complete by this time would this be taken into account? Also I am working abroad and earning a good income so could this be taken into account too?
Many thanks
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 17 October 2008 : 08:58:54
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Hi Laurent
Seeing as your not actually receiving them for a while yet then i would say that they should be safe, the OR may not be interested in the monies as they really want a lot of the time what is due now.
I dont think they will try and get your hands on them unless there is a way round them getting a lump sum now to go towards your creditors.
The money that you are getting whilst working abroad will be taken into account as that is your income and obviously they need to know what is going in and out per month so you will need to tell them, they will then work out if you have to pay into an Income Payments Agreement for 3 years max.
This is based on monies left over once you have paid for your essential living costs.
Take Care
Jo x
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Needafriends Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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Needafriend
Junior Member
United Kingdom
344 Posts |
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Topic |
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would going bankrupt affect pensions?
