My Mother and Father in-law went banckrupt a month ago . They have a surps pension private that they can cash in about £10,000 will this be taken off them from O/R . As i thought that they can't touch your private pension.
Yes - the trustee can claim the tax free lump sum if it is drawn down, so they ought to take advice from an independent financial advisor as to their options.
Also, a recent legal case has indicated that a Trustee in bankruptcy can compel a bankrupt to draw down monies from a pension fund if they become entitled to it during the period prior to discharge.
Last edited by MelanieGiles on Wed Nov 07, 2012 1:11 pm, edited 1 time in total.
