Bankruptcy and Pensions
When bankrupt, you cannot lose your State pension. But, if you
have concerns about bankruptcy and any other pensions, what happens
will depend on a number of things.
- Whether you are a member of an occupational pension scheme or
whether you have a personal pension.
- Any scheme rules about what happens to the pension in the event
of bankruptcy
- The date at which your pension became or would become payable
to you.
Until recently it was believed that private pensions were
protected and unable to be touched if you had not yet reached the
age of retirement and the scheme was not in payment of benefit.
However, following the ruling on 4 April 2012 this is potentially
no longer the case. The judgement in Raithatha v Williamson means
that if you have not yet reached the age of retirement but are
entitled to a payment under the scheme simply by requesting it then
these funds could be demanded by the Official Receiver.
Whatever your situation, you must provide the Official Receiver with all the
information that relates to your pension to allow them to consider
whether they have an interest in this or not.
You should seek professional independent debt advice about the
impact of bankruptcy on any pension that you or your spouse has an
interest in.
Further information can be found in the leaflet "What will
happen to my pension?" which is available from your nearest
Official Receiver's office or online at:
www.insolvency.gov.uk
If you are thinking about bankruptcy as an option, it's worth
taking our short online debt analyser to see if another debt
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