Reply to: Bankruptcy

[CKP Insolvency MVLs]

It depends how much you are going to earn over the next few years. It's best to get discharged as soon as possible. When my brother went bankrupt he went to be a mature student for a few years until he was discharged.

If any income contributions are to be made to the bankruptcy estate then an agreement (IPA) or order (IPO) has to be made before the bankrupt is discharged. Only disposable income over £20 per month will need to be paid in and this will be for a maximum of 3 years from the date that the IPA/IPO starts. If no IPA/IPO is made before discharge, then no income contributions will have to be paid.

The discharge usually happens automatically 12 months after the bankruptcy order.

If you are petitioning for your own bankruptcy, then the usual way that any income contribution is calculated is by reference to an income and expenditure sheet that is completed with the petition. If this sheet reasonably shows that there is no disposable income then no IPA/IPO should be sought. The bankrupt by law must let the Trustee (the person who is in charge of the bankruptcy estate) know if there has been any upward changes to their income within the period that they are undischarged (as said before usually 12 months).

The query with the (approved) pension comes in where the bankrupt potentially can draw down on their pension due to their age, etc but choose not to do so within the 12 months, so to avoid having to pay anything extra into the bankruptcy.

As said in my earlier post, at the moment the bankrupt is not compelled to make the pension funds available and neither can the Trustee force them to make the funds available. However the outcome of the pending appeal in Horton v Henry may change this.

[CoolCat]

Latest is I have stopped talking to HMRC. And my shrink has written to HMRC asking them to put my case on hold for a year.

Good luck mate.

You could try and get free legal advice via citizens advice, who maybe able to point you to legal advice. Or some of the university law departments get their students to offer free advice as part of their learning, not sure how to tap into this but you maybe lucky and get a good one to help.

[BrilloPad]

It depends how much you are going to earn over the next few years. It's best to get discharged as soon as possible. When my brother went bankrupt he went to be a mature student for a few years until he was discharged.

Latest is I have stopped talking to HMRC. And my shrink has written to HMRC asking them to put my case on hold for a year.

[CoolCat]

It depends how much you are going to earn over the next few years. It's best to get discharged as soon as possible. When my brother went bankrupt he went to be a mature student for a few years until he was discharged.

[CKP Insolvency MVLs]

To give an update as to the latest position with pensions and whether they can be included in a bankrupt's estate, the short(?) answer is 'Pending an appeal, HMRC approved schemes are not included at the moment provided you haven't been making excessive contributions'.

The long answer is:

A bankruptcy order given after 29/05/2000 cannot include any approved pension scheme (i.e. HMRC approved per WRPA 1999) as an asset of the bankruptcy estate.
However

• Unapproved pension schemes are included

• Excessive pension contributions can be clawed back for the bankruptcy estate.

• Pending an appeal, it may be that approved pension schemes that are available to be drawn down at the time of bankruptcy will be included in any income payments order/agreement made giving the bankrupt's disposable income to the bankruptcy estate for a maximum period of 3 years from the time that the order was made. It should be noted that currently, the decision in Horton v Henry (which is being appealed, hence the uncertainty) stands and therefore there is no current requirement for available draw downs to be included as part of the bankrupt's estate.

Some useful further reading here:
Family Law Week: Horton v Henry; pensions, bankruptcy and divorce
https://www.gov.uk/government/news/u...-debt-advisors

Every person's situation is different, so I would always recommend that you seek expert advice from an IP/debt advisor as to your circumstances before taking any action relating to the above.

[BrilloPad]

Sorry that you have reached this point BP . This is the background and legal cases for the changes to pensions and bankruptcy as announced in the 2014 Budget http://www.burges-salmon.com/practic..._bankrupts.pdf

Very useful article - thanks. I am going to try to find out exactly when this guy went bankrupt. Not that it makes much difference - my pension could well be in the firing line.

Are you sure BN66 will affect you? Why don't you just close your company and start a new one?

Was that a joke or serious?

[LisaContractorUmbrella]

Are you sure BN66 will affect you? Why don't you just close your company and start a new one?

[ducks]

[Unix]

Are you sure BN66 will affect you? Why don't you just close your company and start a new one?

[LisaContractorUmbrella]

Sorry that you have reached this point BP . This is the background and legal cases for the changes to pensions and bankruptcy as announced in the 2014 Budget http://www.burges-salmon.com/practic..._bankrupts.pdf

[BrilloPad]

Interestingly, my wife spoke to her uncle the other day. He was told his pension was untouchable - but they got it anyway!

Apparently, you have to be legally seperated for 6 months before assets can be seperate. We have been about 6 months so far.

[Platypus]

I've come over all SallyAnne

Have you? You naughty boy

However this is a professional forum, please keep details of you love life to yourself

[TheFaQQer]

Sorry to hear it BP. Wrongly ciicked like on your post, it seems to be a clicking wrong buttons morning.

If you like it again, it unlikes the post.

But there's nothing wrong with showing your support with a like, like.

(I've come over all SallyAnne etc.)

[xoggoth]

Sorry to hear it BP. Wrongly ciicked like on your post, it seems to be a clicking wrong buttons morning.

[eek]

The new pension rules have caused speculation that pensions may not be exempt from bankruptcy proceedings as they used to be, so be cautious when assuming they are protected...

Budget 2014 & changes to pension rules implication for Trustees in Bankruptcy | WHITEMAUND LLP | business recovery and insolvency specialists | 01273 731144

Quickly reading that it seems to say go now rather than waiting for next year.....

[Clare@InTouch]

The new pension rules have caused speculation that pensions may not be exempt from bankruptcy proceedings as they used to be, so be cautious when assuming they are protected...

Budget 2014 & changes to pension rules implication for Trustees in Bankruptcy | WHITEMAUND LLP | business recovery and insolvency specialists | 01273 731144