Bankrupcy

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  • #22477
    jbj
    Participant

    Hi
    Can I have some idea’s please

    We have a case where a person is bankrupt – but he has two out of his 3 pensions paid to the receiver . He is bankrupt from 2000 – 2003
    Do we use the 2 pensions paid to the reveiver as Income as part of his Calc for Benefit ?

    CAB have advised him they should be disregarded – but I cant find anything to confirm this.

    thanks

    #8232
    Kevin D
    Participant

    Hmmm….

    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.

    Regards

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