Horton v Henry: Pensions clarified

We previously discussed the uncertainty surrounding the treatment of pensions in a bankruptcy which arose from two conflicting high court decisions: Raithatha v Williamson [2012] EWHC 909 (Ch) and Horton v Henry [2014] EWHC 4209 (Ch).

In Hinton v Wotherspoon [2016] EWHC 623 (CH) (where this firm successfully represented the trustee in bankruptcy, Lloyd Hinton of Insolve Plus Limited), the court commented that the approach in Horton v Henry [2014] EWHC 4209 (Ch) was “plainly correct”.

FACTS:

InHinton v Wotherspoon [2016] EWHC 623 (CH), Jason Freedman and Aziz Abdul successfully secured an Income Payments Order (“IPO”) on behalf of the Trustee in Bankruptcy.

The court also provided useful guidance on the correct position where a bankrupt has made an election to draw down from his private pension but not given specific instructions as to application of the funds.

LEGAL BACKGROUND:

Stevensdrake Ltd v Stephen Hunt & Others [2015] EWHC 1527 (Ch)

Introduction

The High Court’s recent judgment in Stevensdrake Ltd -v- Stephen Hunt & Others highlights the need for Insolvency Practitioners to make sure that they carefully review conditional fee arrangements before entering into them and understand the potential contractual ramifications which may give rise to personal liability.

Background