Q&As

Can you obtain a third party debt order against a pension?

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Published on LexisPSL on 01/07/2015

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Can you obtain a third party debt order against a pension?
  • When can you use third party debt orders—general
  • Classes of payment protected from being subject to a TPDO
  • Is a pension money owed to the debtor which is a 'debt due or accruing due'?
  • Can you force a judgment debtor to elect to commute their pension up to the amount of the judgment debt?

Can you obtain a third party debt order against a pension?

Note: this Q&A assumes that the debtor is a member of a personal pension scheme under which they have the right to elect to take up to 25% of their pension pot as a tax-free cash lump sum at any time from the age of 55.

When can you use third party debt orders—general

A third party debt order (TPDO) is a method of enforcement by which a creditor may enforce a debt against money due and owing to the debtor by a third party who is within the jurisdiction. This includes money held in the debtor's name in a bank or building society or money owed to a self-employed debtor in the course of his trade. The court has a discretion whether to grant a TPDO and whether they do so will be dependant on the circumstances at the time of enforcement.

For further guidance see:

  1. What is a third party debt order (TPDO)?

  2. How to apply for a third party debt order (TPDO)

  3. When to seek a third party debt order—spotting the opportunities

Classes of payment protected from being subject to a TPDO

A number of classes of payment are protected from being subject to a TPDO. These are:

  1. wages of seamen (Merchant Shipping Act 1995, s 34(1)(a))

  2. certain pensions payable out of public funds

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