What if you pay off your debt before the 36 months

Trom

philnicandamy wrote: »

Skylight is purely stating a FACT

I was only joking around. However, there are genuine scenarios where you can come across money unexpectedly. An inheritance is one of them. Winning the lottery is another. You could land a big job or your OH or someone else in your family may decide to lend you the money privately. A lot can happen in 3 years and it wouldn't mean the BR was a bad decision at the time.

philnicandamy

still...in all those circumstances you mention the OR can still take the lot.....

Trom

skylight wrote: »

If Uncle Tommy dies whilst you are BR, then that would have nothing to do with an IPA.
But if the amount was more than the BR debt then there would be no more justification for an IPA? That was my question and the answer was I can get the BR annulled.

The inheritance would be regarded as an asset that would be taken in full, debts and OR fees deducted and you would be handed the rest back (if there is any).
But I'd still be BR? Again, this was part of the question, now answered.

If Uncle Tommy dies whilst you are still paying an IPA but you are now discharged, the money is yours to keep; unless you are earning money in interest from it then that income from the money is used towards your IPA calculation.
But if I choose to instead give it to the OR and ask him to take for all that is left of my debt, again, what justification is there for an IPA?

Poor Uncle Tommy. I think he should have taken his money to Thailand and spent it all on some pretty girls and sparkly gems whilst he still could.

Uncle Tommy doesn't like Thailand.

JCS1

As an aside, the OR would not apply for an annullment, it would have to be something you applied at court for. Usual process is you need written confirmation from creditors that all debts paid, and the OR submits a report either supporting or objecting to the annullment.

JCS1

skylight wrote: »

Poor Uncle Tommy. I think he should have taken his money to Thailand and spent it all on some pretty girls and sparkly gems whilst he still could.

I do actually remember some cases like that

alastairq

3. Nessie knocks your front door and hands you the leads to Shergar, who is being ridden by Lord Lucan

I suppose I'd have to learn to ride first?

blind-as-a-bat_2

Just to add, if the inheritance is after discharge, the OR can not claim it unless it replaces, or becomes a form of income, the lump sum itself is beyond the OR's reach.

As long as the person passes after discharge, as that is when it is deemed you inheritance, even if it takes years before you actually get the money

fiveyearplan

So many ifs and buts.

oregonuk1

I did think about the same thing if I was to get some money with in 36 months of my bankruptcy to pay my debts off would the OR take it all to cover what I owe and the answer is yes from what people have put here.

Trom wrote: »

I entered a competition the other day with generous prices I would not be able to keep :rolleyes: which got me thinking...

You go BR owing £20K
You enter into an IPA
Four months later you come into £25K somehow

Does the OR take what they need and let you have the rest, releasing you from the IPA? Would you also get early discharge? There must be people who ended up paying off the whole debt while BR somehow or at least while still within an IPA.

magicgirl

i too had same thoughts when i was br. it never happened and i didn't have an ipa anyway - discharged after almost six months. i was more worried about assets such as a car being gifted after br but have reliably been informed taht i get to keep it if it is gven now.