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02 December 2016 / Graham McPhie
Issue: 7728 / Categories: Features , Commercial
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Graham McPhie reports on resolving the tension between bankruptcy & pension rights
  • Horton v Henry [2016] EWCA Civ 989, [2016] All ER (D) 50 (Oct) has settled a conflict between two High Court decisions regarding whether a trustee in bankruptcy was entitled to force a bankrupt to take a pension not yet in payment.

In Raithatha v Williamson (a bankrupt) [2012] EWHC 909 (Ch), [2012] 3 All ER 1028 the High Court determined that a bankrupt’s entitlement to compel payment of pension benefits fell to be included in the assessment of his income within the meaning of s 310(7) of the Insolvency Act 1986 (IA 1986).

The High Court in Henry v Horton [2014] EWHC 4209 (Ch), [2014] All ER (D) 193 (Dec) declined to follow Raithatha on the grounds that it was wrong on the effect of s 310(7).

The Court of Appeal formulated the question as follows: “Does a pension entitlement in respect of which a bankrupt has a present right to elect to draw down payment (but which

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