In a further twist to the consequences of the Horton v Henry judgment on IPOs and undrawn pensions, today’s press release from the Insolvency Service (IS) raises the proposition of an annulment application being made in cases where a debtor had at the time of his petition hearing undrawn pension rights. In the case of undrawn pension rights for a petitioning debtor of pensionable age, the IS rightly identifies that there will be questions to be asked as to the debtor’s insolvency at the time of the hearing. The appeal in this matter is due to be heard in November this year, pending which time the IS advice is that insolvency practitioners should not include undrawn pensions in any excess income calculations.
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