Receiving large payout for injury, want to buy a house

Asbestoskiwi

i was made bankrupt in february 2007 and i was discharged early (4 months later July 2007), i have just received a settlement from an accident i had and i have £35,000 in a trust account, i would like to put this as a deposit on a house but i am not sure if the official receiver should take it, i have been on numerous websites and asked for and read advice, i asked one online company who said once you are discharged any money received is mine, and i read on another that it is best to wait between 12-24 months before buying a house after bankruptcy but you need to have between 15-25% for a deposit, now surly if this is so then the bankruptcy would take your deposit money off you, im very confused and would like any help if anyone has any answers, thanks

beentheredonethatstilhere

When was the incident that you recieved the money for? Was it before or during your bankruptcy?

JCS1

• When was the date of the accident in relation to your BR?
• Is the money all for pain and suffering? or is some element of i for loss of income, etc?

Asbestoskiwi

i had the accident in august 2006 and the total payout was for £77k which included loss of earning etc, i have paid £14k back to the benefits and £36k was for pain and suffering, ive got £38k in a trust account with my solicitors

JCS1

Asbestoskiwi wrote: »

i had the accident in august 2006 and the total payout was for £77k which included loss of earning etc, i have paid £14k back to the benefits and £36k was for pain and suffering, ive got £38k in a trust account with my solicitors

OK, as accident before BR date then the money is an asset in your BR.

BUT any money for pain and suffering is yours to keep. The OR will be interested and will probably take any money that relates to loss of earnings though.

Asbestoskiwi

how long is it before your not affected by the official receiver after your discharge

JCS1

Asbestoskiwi wrote: »

how long is it before your not affected by the official receiver after your discharge

Because the accident was prior to your BR, then the loss of earnings wold be classed as an asset. If you don't tell them and they find out, they will argue that they did not declare it on the paperwork that you filed at court.

Asbestoskiwi

how long is it before your not affected by the official receiver after your discharge

beentheredonethatstilhere

As JCS has said as this is something that happened pre bankruptcy the OR will have an interest. There is no time limit to when s/he will not take an interest. I am afraid you have to give up part of your pay out.

JCS1

Asbestoskiwi wrote: »

how long is it before your not affected by the official receiver after your discharge

I underdstand where you're coming from, but it's not that simple. The claim is an asset in your Bankruptcy as it pre-dates the BR Order.

If the accident had happened after BR, then the OR would not have any claim.

Asbestoskiwi

just my bloody luck that is lol