Advice on inheritance before BR

MollyBear

Hi all, just a quick question on behalf of someone!

They were left a property in a will, they have to share this property with 3 others and acquired it in Nov last year. They have been trying to sell the property since then so they can split the money equally, but still waiting on the sale.

They are now considering BR, but want to know if the OR can take the money owed to them once the sale eventually goes through??

Thanks in advance.

Molly
x

gpkwells

If the house sells prior to BR the cash gained will be classed as an asset and will be used to pay creditors. If the money is put in someone elses name the OR will be able to trace it and still claim it. Disposing of assets before going BR is classed as illegal.

If the sale happens during BR the OR will also take the proceeds as payment to creditors.

If the house hasn't sold the OR can sell it I believe.

Someone with more knowledge on this should be along soon to give you more clarification.

tigerfeet2006

Also if it is sold after discharge the OR will be very interested :rolleyes:

MollyBear

So basically if she goes bankrupt she will lose her part of the inheritance even though it hasn't sold yet and was 'given' to her over a year ago?

tigerfeet2006

I am afraid that is about the long and the short of it Molly. It is an asset and will be treated as so.

Has she rang one of the debt charities yet? If not get her to do so asap.

MollyBear

Thanks for the replies and advice, I'm a bit worried now as she has only been to CAB once but not told them about the inheritance and she has a few other people she knows telling her to keep quiet about it!!

I know this is the wrong thing to do and that she could get caught and in serious trouble but these others are telling her that they can't trace it and that they know people who have gone BR a few times and always managed to hide assets and get away with it

I have told her to go back to CAB and tell them about it and see what they say, otherwise maybe she shouldn't go BR??

fermi

Please get them to seek some further advice on this.

As you have no doubt worked out, basing a decision on what others allegedly claim they have got away with is not a good idea.

The OR/trustee would certainly have a claim in this.