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Bankruptcy, Inheritance & Moving House

My wife and I will be going bankrupt in the next couple of months or so. I've just found out I may have an inheritance coming my way in the meantime (approx 20% of our combined debt).
We need to move from our current property due to my wife's health needs (and the Bedroom Tax) and are hoping to move from one end of the country to the other on the basis this is likely to be our best chance of getting a property in the area we really want to live in (once we move from here we'll be suitably housed and will have a much lower banding). There's also a far larger supply of suitable properties in the area we're hoping to move to than where we are now - though we're on both housing lists.
Would the fact we're moving 100's of miles rather than locally go against us with the OR?
If I receive the inheritance before going bankrupt would it be acceptable to use a chunk of it (about 20% of the inheritance - equivalent to about 4% of our combined debt) towards moving house or would this be frowned upon by the OR?
If I go bankrupt before the inheritance is received is the OR likely to allow the costs of the move from the inheritance money or is he going to take it all and leave us without the money to move?
Without the inheritance money we'd be stuck where we are as we have no way of raising the funds to move house and no prospect of doing so in the foreseeable future - with the end result we'll be stuck in an unsuitable property that we can't afford.
The past few months have been a nightmare - knowing we need to move but not knowing how we could possibly fund it - this inheritance has the potential to be a lifeline in terms of our move but at the moment it's just causing even more stress as I need to know how best to handle this. I don't want to do anything that's going to get me in (more) trouble with the OR at this stage but if the whole inheritance is going to be taken and nothing left for our move I just don't know where this leaves us.
Okay, actually I do - back where we were before the inheritance - but stuck in an impossible situation.
If the OR is likely to take the whole lot I guess we'll just need to put off the BR and move - and then take the wrath of the OR when we do go BR.
I'm trying my best to do the right thing but am dealing with a very difficult and quite unusual set of circumstances here - unless you know all the circumstances it'd be appreciated if the judgement was omitted - I'm expecting enough of that from the OR when the time comes.
Thanks in advance for any and all constructive advice.
All my friends and neighbours helped me pack and move for free, at first I was happy until I got told no one liked me and they just wanted to make sure I left. Thanks Mum and Dad.

Comments

  • sniggings
    sniggings Posts: 5,281 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    moving is not a problem, also using the funds for living expenses is fine too, just keep receipts and records to show where it went, the OR will ask about holidays and such like but as said living expenses are fine, moving away is your call, nothing to do with the OR .

    Once BR tho and then things change, if the money lands then, the OR will want it and is unlikely to give it back for moving expenses so best try and sort your living expenses out first.
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