Bankruptcy

Bankrupt's property - annuities and personal pension schemes - vesting in trustee in bankruptcyKrasner v Dennison and others: Lawrence v Lesser: CA (Kennedy, Chadwick and May LJJ): 6 April 2000In each case, the trustee in bankruptcy successfully applied for a declaration that under the Insolvency Act 1986, the bankrupt's retirement annuity and personal pension policies formed part of his estate and vested in the trustee on his appointment, the judge in each case deciding that he was bound so to conclude by the decision of Ferris J in In re Landau [1998] Ch 223 - although the position had been reversed by s.11 of the Welfare Reform and Pensions Act 1999 for bankruptcies commencing after that section came into force.

The bankrupts appealed.Leolin Price QC and David Schmitz (instructed by Porter & Co, North Cheam) for the bankrupt in the first case.

Christopher Brougham QC and John Briggs (instructed by Brooke North, Leeds) for the trustee in the first case.Robin Howard (instructed by Marcus Baum, Southend-on-Sea) for the bankrupt in the second case.

Adam Deacock (instructed by Kenneth Elliott & Rowe) for the trustee in the second case.Held, dismissing the appeals, that retirement annuity contracts and personal pension policies formed part of a bankrupt's estate within s.283(1) of the 1986 Act and, on his appointment, were vested in the trustee in bankruptcy under s.306(1); that s310 provided a separate regime in relation to after-acquired property in the nature of income which did not form part of the bankrupt's estate unless received by the trustee under an income payments order; that s.310 had no application to property which had vested in the trustee under s.306(1); and that, accordingly, there was no need for an income payments order under s.310 in order for the pension policies to become available to creditors.