Martin Jones: How is a pension treated in the event of bankruptcy?

Under current insolvency legislation, workplace and personal pensions are excluded from a bankrupt estate and cannot be claimed by a Trustee in Bankruptcy (TIB). This is on the proviso that the pension scheme is registered with HMRC (the vast majority of pension schemes are), with the state pension also being exempt. Therefore, a TIB cannot simply dip into a client's pension in order to repay their creditors. Exceptions to the rule That's not to say that a TIB does not have any avenues for recourse. If a client has made ‘excessive' contributions into their pension in the period bef...