Question:

Wen can I start a Pension after going Bankrupt?

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I went Bankrupt at the begining of May. At the end of June I gave up smoking and would like to put this small amount of extra money to use. The bank keeps advising me I should be thinking of starting a pension, which I know they are right about.

If i do start a pension so soon after a bankruptcy can one of the companies I owned money to, say they are entitled to this extra money even tho, as I say it is a very small amount compared to what I went bankrupt for.

Can someone pls advise.

Thanks

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4 ANSWERS


  1. Once you have paid money into a pension, the government will not normally allow it back out again unless it is to meet a legitimate purpose such as paying a retirement income or death benefits. This means that from a pension point of view in principle the money would be ring-fenced. Having said that I’m not sure that your creditors will necessarily be too enthusiastic about you putting aside money for your own long term benefit, rather than paying them what you owe them. I suggest that you check your legal position on this one.

    Disclaimer:

    The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances.  To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.


  2. Has your bankruptcy been discharged?? What did you file??? Chapter 7 or 13?? If you filed a 7 and it's discharged, no old creditors can take anything from you...once you retained the attorney, filed and got a case#, they are stopped dead in their tracks.

  3. you have to declare any money that you make so as long as you tell your official reciever what you rec through wages or benefits each month and then you can do what you like with them...as long as it doesnt exceed over what they deem livable as any extra over 100 you cant account for can be claimed by one of the companies

  4. If the bankruptcy discharged the debt, they have ZERO claim in any case.  If it did not discharge the debt, they had a claim even while you were spending the money to smoke.  Putting the money into a retirement account may actually REDUCE any claim the creditors have.  Once the money is in the account, they generally can't touch it even if they have an otherwise valid claim.

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