'Windfalls' during BR

Happy_bunny · 25 September 2017 at 6:58PM

Can anyone enlighten me on how any (unexpected) windfalls would be dealt with by the OR?

Couple of examples of what I mean below -

Accident causes TV to become damaged beyond repair - Unexpected amount of say £300 from home insurance claim but now have to replace the TV

Win competition - the prize is entertainment equipment for the house, Say TV, Laptop, Games console ect - Worth £2500, Can I sell any of these items? Or keep the new items and sell my own goods as no longer required?

eBay - Regularly have a clear out - all stuff that's been bought by myself - DVD's, Games, Kids clothes - Mainly household but am a hoarder/collector so some items such as old coins, model cars and collectable cards - Is this allowed? the income is generally used to replace what's been sold with newer/different stuff.

Be grateful if someone 'in the know' can cast a light

debt_doctor · 25 September 2017 at 7:25PM

Hi,
Any windfalls or property acquired during the undischarged bankruptcy period are known as 'after acquired property.'
With the TV replacement on insurance - if it is a like for like TV of an average standard, it would be yours to keep as it is simply a replacement of normal household goods.

Any competition wins, whatever the prize, belongs to the OR and the OR will decide how to turn that prize in to something that benefits the BR estate.

Old coins and collectables of value would be notifiable assets at the beginning of BR, and would belong to the OR. To sell your ordinary household goods, that are exempt as assets, for 'a few pounds' would not create any OR interest.

DD

Happy_bunny · 25 September 2017 at 7:35PM

debt_doctor wrote: »

Old coins and collectables of value would be notifiable assets at the beginning of BR, and would belong to the OR

Is there any kind of cash value the OR considers an asset? By old coins and collectables I'm talking about less than £10 value on most things!

I'm now concerned I need to add these things to my BR!

debt_doctor · 25 September 2017 at 7:50PM

An item of £10 on its own would be of no interest, but if there are several of them they potentially would be.
Anything outside the scope of 'normal household goods' are potentially assets to be declared. Certainly small nominations of premium bonds are taken.
Think of all the coins and collectables you have and their total value - minus what it might cost the OR to dispose of them. What does that come to as a net balance?
If significant, it should be declared.
DD

TheGardener · 25 September 2017 at 10:03PM

debt_doctor wrote: »

... Certainly small nominations of premium bonds are taken...

Testament to the premium bonds - I had 3 x £1 PB's bought by my nan over 50 years ago for a birthday - believe it or not I did declare them and I did have to pay the OR £3 to buy them back AND would have had to declare it if the numbers came up during my BR year!!

However, as far as ebaying goes - I did have a little collection of pottery (only worth a couple of hundred pounds in total) plus a load of other bits and pieces I sold to pay for my BR fees. The OR could see all the ebay transactions on my bank statements but never questioned any of them.

Helpmeoutofthismess · 25 September 2017 at 10:22PM

TheGardener wrote: »

Testament to the premium bonds - I had 2 x £1 PB's bought by my nan over 50 years ago for a birthday - believe it or not I did declare them and I did have to pay the OR £2 to buy them back AND would have had to declare it if the numbers came up during my BR year!!

However, as far as ebaying goes - I did have a little collection of pottery (only worth a couple of hundred pounds in total) plus a load of other bits and pieces I sold to pay for my BR fees. The OR could see all the ebay transactions on my bank statements but never questioned any of them.

Gutted I didn't know I could have bought my PB's back, I had to send in the £5's of PB that had been bought for me when I was born 😕

H x

luvchocolate · 26 September 2017 at 8:57AM

Helpmeoutofthismess wrote: »

Gutted I didn't know I could have bought my PB's back, I had to send in the £5's of PB that had been bought for me when I was born 😕

H x

I know just how you feel I had to give my £1 P.B which my Father bought me when I was born
£1 must have been quite a lot of money in 1952.

TheGardener · 26 September 2017 at 6:09PM

The PB's were from my nan when I was born too but the OR did ask me if I wanted to buy them back and it was only because she asked that I jumped at the chance or I wouldn't have known either.
I nearly didn't mention them but then it would have been 5ods law if they'd come up during my BR year.
By keeping them the OR has the chance to claim any prize if they EVER come up but I was allowed to buy them back for their face value.

Based on the Bank of England inflation calculator £3 when I was born would be about £50 today so that would have been a lot of money to my Nan.

Violet1881 · 26 September 2017 at 9:59PM

I also had to hand over the £10 worth of premium bonds I was bought as a baby. I wish I had known I could buy them back, not that I think I would ever win with them (I never have) more the sentimental value.

Mollie_Guinness15 · 27 September 2017 at 3:07PM

Same here, I had £25 from when I was born, around £250 in today's money. Wish I'd known you could buy them back too. Though in the grand scheme of things, being cleared of all my debts and given a fresh start is well worth surrendering a few PBs.

debt_doctor · 27 September 2017 at 8:16PM

Concerned that it seems most bankrupts are not informed they could buy out the interest in the bonds (face value) as I can well understand how it would matter why and who bought them.
I suppose that if the OR retained the interest until just before discharge, they could benefit from any prize money, but no reason they couldn't accept face value from bankrupt just before discharge.
DD

'Windfalls' during BR

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