Bankruptcy – What Happens To Your Pension?

debt Bankruptcy is a High Court process that deals with secured debt and unsecured debts. When you are made bankrupt, your assets transfer to a person in the Insolvency Service of Ireland (ISI) called the Official Assignee. Most forms of unsecured debt are written off and you may be able to agree on a schedule of mortgage payments with the bank and the Official Assignee to enable you to remain in your home. Bankruptcy normally lasts for one year. Generally, pension assets are not transferred to the Official Assignee.  However, pension income receivable by you will be treated as income for the purposes of your bankruptcy. An ARF and Vested Personal Retirement Savings Accounts (Vested PRSAs) may be included in your bankruptcy estate for realisation and payment to your creditors. If you have a pension entitlement that matures within five years of your bankruptcy order, the Official Assignee will have the right to claim it for the benefit of the bankruptcy estate.

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