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traceyc6
Starting Member
3 Posts |
 Posted - 08 March 2009 : 12:42:30
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My occupatinal pension was in payment at the time of my being declared bankrupt. I received a lump sum payment and annuity payments. The Trustee is noe demanding that I pass over the capital received from the lump sum.
I was advised that under the Welfare Reform and Pensions Actr 1999 that my pension would not be part of the bankruptcy estate except in consideration of an IPA or IPO.
Can the trustee take the capital lump sum of £43,000.00? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 March 2009 : 13:06:19
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Hi and welcome,
I don't know the answer to the question, but just wanted to welcome you and let you know that you're not being ignored!
One of the experts will be along soon to help you.
The glimmer gets brighter all the time
Jan
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John
New Member
United Kingdom
73 Posts |
Posted - 08 March 2009 : 18:19:52
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Hi
approved occupational pension payments are indeed exempt from being claimed as an asset.
However, if the pension is in payment whilst you are in bankruptcy then the regular receipts and / or any lump sum payments are claimable through the IPA / IPO process. Therefore the lump sum is being claimed as income and not an asset.
John White
England Jackman & Spacey |
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traceyc6
Starting Member
3 Posts |
Posted - 08 March 2009 : 23:45:37
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[quote]Originally posted by John
Hi
approved occupational pension payments are indeed exempt from being claimed as an asset.
However, if the pension is in payment whilst you are in bankruptcy then the regular receipts and / or any lump sum payments are claimable through the IPA / IPO process. Therefore the lump sum is being claimed as income and not an asset.
John White
Hi John,
Thanks for the information. When you say the trustee can claimmthe lump sum as income how does he work the incoem from the lump sum to make an IPA or IPO?
regards Steve
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John
New Member
United Kingdom
73 Posts |
Posted - 09 March 2009 : 04:45:18
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Hi
where an IPA is in force the OR has a 3 year window during which it is his duty to realise as much as he can from your assets and this eventually forms your estate. The estate is then distributed amongst your creditors pro rata after all of the trustees fees have been paid.
Technically, if your regular I&E balances out to leave a +/- zero disposable income you would not expect an IPA. Likewise if you were not in receipt of any pension monies either on a regular basis or in lump sum whilst you are a bankrupt then the pension is exempt.
Additionally an Inland Revenue approved pension cannot be claimed as an asset.
However, if any lump sum or regular pension payment takes you over the £99 minimum monthly disposable income level whilst in a bankrupt state then an IPA can be instigated providing you have not yet been discharged.
You appear, during one particular month, to have had a disposable income of £43,000. Therefore the OR is claiming that figure via the IPA principle, even though it is a one off, rather than the claiming of an asset.So you could be in an IPA for 3 years without making any further contributions due to the lack of DI.
If I were you I would discuss this, with a careful approach, to determine that the examiner is indeed making the claim under the correct section of the Insolvency act which relates to IPA and not assets.
Once you have established this as fact I would politely suggest to the examiner that under the terms of an IPA, which he will now need to put into action because if he is indeed claiming through this principle the IPA should be in place BEFORE he makes the claim, the maximum percentage of DI claimable by the OR is 70%.
70% of £43,000 is £30,100 which means, in theory, you should be able to keep the balance £12,900.
The OR cannot have it both ways, either the lump sum is an asset and exempt or income which is subject to the 70% rule.
Good Luck and let us know how you get on.
Oh, and if you do retain the £12,900 by quoting the above mines a large scotch!!!!
(Only joking!)
Of course all of the above is nonsense if your pension is not inland revenue approved as this would mean it is claimable as an asset and therefore the OR will claim it all.
John White
England Jackman & Spacey |
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My occupatinal pension was in payment at the time
