Lehane v Wealth Options Ltd & Anor (Approved) [2021] IEHC 856 (29 January 2021)

Lehane v Wealth Options Ltd & Anor (Approved) [2021] IEHC 856 (29 January 2021)

The 25% lump sum from the pension policy is 'money other than income' under s.44A(2)(b) of the Bankruptcy Act 1988 and vests in the Official Assignee without the need for a Bankruptcy Payment Order. The OA is entitled to exercise options under s.44A(4) within five years of adjudication. The bankrupt is obliged to give reasonable assistance to the OA, but the extent of this obligation depends on the facts of each case.

Citation
[2021] IEHC 856
Parties
Applicant: Christopher Lehane; First Respondent: Wealth Options Limited; Second Respondent: Brian O’Neill; Notice Party: The Revenue Commissioners
Jurisdiction
Ireland
Judgment Date
29 January 2021
Procedural Posture
Application for Directions in Bankruptcy / High Court Judgment
Outcome
Application granted in part; directions given
Legal Topics
Vesting of Pension Assets in Bankruptcy, Bankruptcy Payment Orders, Interpretation of Bankruptcy Act 1988 S.44 a and S.85 D, Interaction With Taxes Consolidation Act 1997
Bankruptcy Pensions Law Vesting of Pension Assets in Bankruptcy Bankruptcy Payment Orders Interpretation of Bankruptcy Act 1988 S.44 a and S.85 D Interaction With Taxes Consolidation Act 1997

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Parties

Christopher Lehane

Applicant

Wealth Options Limited

First Respondent

Brian O’Neill

Second Respondent

The Revenue Commissioners

Notice Party

Procedural Posture

Application for Directions in Bankruptcy / High Court Judgment

Legal Issues

  1. 1 Whether a Bankruptcy Payment Order is required for lump sum payments from a bankrupt's pension policy
  2. 2 Whether the Official Assignee is entitled to complete documentation to avail of a lump sum payment from the pension policy
  3. 3 Whether the bankrupt is obliged to assist the Official Assignee in exercising options under the pension policy

Ratio Decidendi

The 25% lump sum from the pension policy is 'money other than income' under s.44A(2)(b) of the Bankruptcy Act 1988 and vests in the Official Assignee without the need for a Bankruptcy Payment Order. The OA is entitled to exercise options under s.44A(4) within five years of adjudication. The bankrupt is obliged to give reasonable assistance to the OA, but the extent of this obligation depends on the facts of each case.

Court Disposition

Application granted in part; directions given

Orders

  • The 25% lump sum from the pension policy vests in the Official Assignee without the need for a Bankruptcy Payment Order.
  • The Official Assignee is entitled to exercise options under s.44A(4) of the Bankruptcy Act 1988 within five years of adjudication.