*Hinton (trustee in bankruptcy of Wotherspoon) v Wotherspoon

Bankruptcy – Trustee in bankruptcy. The Chancery Division held that s 310 of the Insolvency Act 1986 applied to the defendant bankrupt's self-invested personal pension (the SIPP), in respect of which he had elected to drawdown. It held that, as the bankrupt had elected to receive income from his drawdown fund each year up to a certain limit, he had 'become entitled', within meaning of s 310 of the Act, to the maximum sum which he had elected to drawdown from his SIPP. Accordingly, an income payments order was made. However, the court allowed for payment of the bankrupt's reasonable domestic needs. It held that, in respect of an undrawn pension, Horton v Henry[2014] All ER (D) 193 (Dec) was plainly correct. A bankrupt was not 'entitled' to a payment if there were elections still to be made as to how to apply pension funds and the mere existence of a drawdown fund was not enough to establish an 'entitlement'.

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