Reply To: Bankrupcy

Kevin D


There is some case law somewhere (or a CD) where it was found that a claimant’s private pension, paid directly to a former partner by the pension provider (courtesy of a divorce / separation settlement etc), did NOT count as income of the claimant.

However, I think the facts of your case distinguish it (subject to someone producing case law showing otherwise). Although the money is being paid directly to a third party and, presumably, the claimant has no choice in the matter, my inclination is that it counts as the clmt’s money.

My reasoning is that the situation is akin to a clmt repaying a social security benefit overpayment by way of deduction from ongoing benefit (e.g. Incapacity Benefit). There is no question in such a case that the GROSS amount of Incap counts as income.

I’d write back to the clmt (or CAB) advising that you are unable to find anything in the regs allowing you to disregard the income and ask them to state the basis of their view.