Bankrupts’ Pensions

Krasner v Dennison and others; Lawrence v Lesser (CA TLR 18 April)

Retirement annuities and personal pension policies belonging to a bankrupt form part of his estate within s283(1) of the Insolvency Act 1986 and vest in the trustee in bankruptcy on his appointment under s306(1). It is not therefore necessary to make an income payment order under s310 in order for those pension policies to become available to creditors. Anyone made bankrupt since 29 December 1986 loses the future right to receive their personal pensions even after their bankruptcy has been discharged. The decision does not affect pension schemes if they contain specific or statutory exclusions preventing the trustee from taking ownership on bankruptcy, although it has been suggested that the efficacy of such exclusions may be in doubt.