Finance Litigation Briefing October 2016: Report And Review On The Latest Cases And Issues

Gowling WLG's finance litigation experts bring you the latest on the cases and issues affecting the lending industry.

Uncrystallised pension pot remains protected following bankruptcy

The Court of Appeal has confirmed that a trustee in bankruptcy cannot compel a bankrupt to draw down payments from his personal pension where he had not elected to make such drawdowns at the time of the bankruptcy.

In Horton (as trustee in bankruptcy for Henry) v Henry, although Henry had a number of pension policies and was entitled to draw down payments under the policies, he had not done so. The trustee sought an income payments order (IPO) in relation to the income Henry would be entitled to if he did elect to draw down payments pursuant to sections 333(1) and 310 of the Insolvency Act 1986 (IA). At first instance, the court - refusing to follow the decision in Raithatha v Williamson [2012] - held that the bankrupt's entitlement to elect to draw down was not included in