Deductions can be made in the debtors pension during the bankruptcy process. The percentage or amount of deductions is decided by the Official Receiver appointed by the court. Except state pensions, all other forms of pension in the United Kingdom is subjected to deductions.
A debtors pension may effected in a number of ways. The Receiving Officer may ask for a definite percentage of the debtors pension. Deducted may be made during the bankruptcy process or at a future time.
There are different forms of pensions that exist in the United Kingdom. The types of pension are: State,Group Personal, Occupational and Personal. All forms of pensions, except the state pensions, are subjected to deductions; with the percentage being decided by the Receiving Officer. The deductions depend on the fulfillment of certain conditions.
During the bankruptcy process the bankrupt person must provide assistance to the Receiving Officers. Important information, such as, the name of the pension scheme, two years history of deposits in the scheme and the total financial benefit from the pension, is needed in order to fix the amount of deductions from the pensions. The pending amount of all these schemes is also subjected to deductions. Each and every document of these pension schemes is necessary.
Legally a bankrupt person can contribute to the personal pension scheme but cannot get proper advantage of these contributions as deductions will be made from the pension in bankruptcy process.
Last Updated on : 10th July 2013