How a pension is dealt with in bankruptcy

Produced in partnership with Philip Hinks of 3 Verulam Buildings (3VB)
Practice notes

How a pension is dealt with in bankruptcy

Produced in partnership with Philip Hinks of 3 Verulam Buildings (3VB)

Practice notes
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The position of a Personal pension on Bankruptcy

A Bankrupt’s Estate automatically vests in the official receiver (or an insolvency practitioner if instead appointed at the time) as first trustee in bankruptcy (trustee) on the making of a bankruptcy order. Various items are excluded in this respect, including tools and equipment required by the bankrupt for business purposes, and clothing etc necessary for satisfying the bankrupt’s basic domestic needs.

This Practice Note addresses the issue of what happens to an individual’s pension rights on the making of a bankruptcy order. It considers the effect of bankruptcy on occupational, personal and state pension arrangements.

Bankruptcies predating 29 May 2000

This section applies to persons made bankrupt as a result of bankruptcy petitions presented before 29 May 2000.

Rights acquired in relation to both personal pension schemes and occupational pension schemes are ordinarily recoverable by the bankrupt’s trustee. A debtor’s contractual rights under such schemes are regarded as choses in action falling within the wide definition of property provided by section

Philip Hinks
Philip Hinks chambers

Philip, barrister at 3 Verulam Buildings, has a strong commercial practice which sees him regularly instructed in high-value and complex matters, particularly in relation to general commercial, company and insolvency disputes. He has a particular expertise in cases with a civil fraud angle. For example, he was part of the legal team representing the FCA in the Court of Appeal in what is the leading authority on collective investment schemes and the first fully-contested Unauthorised Business trial. He also represented the liquidator, led by Marcia Shekerdemian, in Re Ultraclass Ltd, where freezing and proprietary injunctions were obtained in support of misfeasance proceedings arising out of an alleged ‘land banking’ fraud.

Chambers UK 2015 recommended Philip as a leading junior for Restructuring/Insolvency: "He exudes authority, and has the ability to grasp complex issues quickly." Previous directories quote Philip as “Frighteningly efficient and very bright." "A really excellent junior."

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Jurisdiction(s):
United Kingdom
Key definition:
Bankrupt definition
What does Bankrupt mean?

An insolvent individual whose assets are being realised for the benefit of his creditors.

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