19/10/2016
Last Friday’s judgment from the Court of Appeal in the case of Horton v Henry gives long-needed clarity on the position of pensions in bankruptcy matters.
Whilst the judgment is detailed, in principle it states;
- uncrystallised pension rights do not fall within the bankruptcy estate and
- a trustee in bankruptcy cannot compel a bankrupt to drawdown or crystallise his/her pension even if they are at the age where the bankrupt is contractually entitled to do so.
Karen Elder, Partner in Disputes team at Beswicks comments;
“This is an important judgment and brings clarity to what has been an uncertain area for all concerned in bankruptcy matters.
Pre-bankruptcy enforcement of Court judgments is not affected and a pension pot can still be considered as an asset to enforce a judgment against prior to bankruptcy”
For more details on this or any aspect of dispute resolution, contact Karen Elder on 01782 205000 or karen.elder@beswicks.com
Beswicks Legal Dispute Resolution team awarded Top Tier in the 2016 Legal 500 Guide to Law Firms.
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