High Court rules bankrupts must hand over pensions

In the case Raithatha v Williamson, B Livesey QC ruled that a pension which has not yet been drawn, but which a bankrupt could draw because they are of the right age, can be subject to an income payment order. Previously a bankrupt's undrawn pension had been considered out of reach of creditors as it was not considered income. However, the judge ruled today that because a bankrupt is entitled to a payment from a pension, even if they are not yet taking payments, that pension is subject to other bankruptcy rules. Specifically, the judgement will affect people who have reached their ...