In the matter of Horton v Henry the Court was asked to decide whether the debtor, Mr Henry should be made to draw down on his pension for the benefit of the creditors in his bankruptcy.
The Court held that Mr Henry could not be forced to draw down on his pension. Although the trustee in bankruptcy argued that the pension should be included in the bankrupts income and payments order, the Court found that to include the pension would be in breach of the bankrupt’s pension rights in accordance with the Insolvency Act and pension legislation. In addition, it would make a mockery of the bankruptcy order which provides a debtor with certain protection from his creditors.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
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