Pensions and bankruptcies – confused? You will be!

The saga continues as to whether a pension pot can be made available for creditors in a bankruptcy, especially in light of the new reforms which will enable over 55’s to access more of their pension pots early!

Two recent cases have contradicted each other.  In the matter of Raithatha v. Williamson [2012] EWHC 909 (Ch) the court decided that because the debtor had reached 55 and had an entitlement to a pension payment, they could make an Income Payments Order (IPO) to include the value of the entitlement.

By contrast, the case of Horton v. Henry [2004] EWHC 4209 (Ch) the court decided that neither they nor the trustee in bankruptcy could force the bankrupt to take his pension just because he could!

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.

Redman Nichols Butler has had a York office for seven years now. John Butler specialises in advising SME businesses in York and North Yorkshire. The Redman Nichols Butler York office address is Westminster Business Centre, Nether Poppleton, York, YO26 6RB.

Redman Nichols Butler has had a Driffield office for 19 years now.  Andrew Nichols specialises in advising SME businesses in East Yorkshire. The Redman Nichols Butler Driffield office address is Maclaren House, Skerne Road, Driffield, East Yorkshire, YO25 6PN.

Redman Nichols Butler has had a Scunthorpe office for 4 years now.  Mark Neumegen specialises in advising SME businesses in Scunthorpe, Grimsby and all over North East Lincolnshire. The Redman Nichols Butler Scunthorpe office address is Suite 8b, Normanby Gateway, Lysaghts Way, Scunthorpe, DN15 9YG.

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