Q&As

Where an individual was made bankrupt in 1991 and has since been discharged, is their trustee in bankruptcy able to claim the bankrupt’s pension that existed at the time of the bankruptcy order for the benefit of creditors? If so, and the bankrupt has continued to make contributions to the pension, is the trustee in bankruptcy’s claim limited to the value of the pension at the time of the bankruptcy order or an increased amount?

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Published on LexisPSL on 21/11/2017

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Where an individual was made bankrupt in 1991 and has since been discharged, is their trustee in bankruptcy able to claim the bankrupt’s pension that existed at the time of the bankruptcy order for the benefit of creditors? If so, and the bankrupt has continued to make contributions to the pension, is the trustee in bankruptcy’s claim limited to the value of the pension at the time of the bankruptcy order or an increased amount?

Under Section 283(1)(a) of the Insolvency Act 1986 (IA 1986) the estate of a bankrupt is defined as all property belonging to the bankrupt at the commencement of the bankruptcy. Certain property such as tools of trade and things necessary for the bankrupt's basic domestic needs and those of their family are exempt from being part of the bankrupt's estate. Under IA 1986, s 306 all the assets forming the bankrupt's estate vest in the trustee on their appointment. For further reading, see Practice Note: What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to take?

The discharge of the bankrupt does not alter IA 1986, s 283 or IA 1986, s 306. Other than property caught by IA 1986, s 283A, assets and interests comprising the bankruptcy estate remain vested in the trustee unless and until dealt with by the trustee.

As a result of the Welfare Reform and Pensions Act 1999 (WRPA 1999), rights and benefits in respect of an approved pension scheme are excluded from being a part of the bankruptcy estate for bankrupt

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