Bankruptcy discharge and subsequent bequest in a will

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fermi wrote: »

You would be in breach of the terms of your bankruptcy order. Concealing assets from the OR could at the least land you with a long Bankruptcy Restriction Order/Undertaking, or even lead to prosecution.

I appreciate that but if a tree falls in the woods with no-one around, does it still make a sound ? It may be in breach, but is there a system in place to automatically check or if as I suspect it is left to the BR to report the windfall, then it would be a moral debate, such as whether to report yourself for littering, speeding or bringing back extra duty free cigarettes.

tigerfeet2006

The soliciters will automatically do a search before handing any monies over so the BR will show up and the money will go to the OR any way.

BB&B

All Solicitors when dealing with inheritances are professionally obliged to check the bankruptcy register at Birmingham, BEFORE any payout is made.

If the beneficiaries name is on the register and the cause of the inheritance falls during the time of the bankruptcy the solicitor is obliged to inform the OR (failure to do so could result in professional misconduct)

If the beneficiary has already informed the OR then MOST ORs are very generous in what percentage you get to keep. If you fail to tell the OR and the Solicitor does then ORs are legally obliged to take the lot.

It has also been known that if the OR finds out about a large inheritance (even several years after) then the discharge CAN be suspended whilst criminal proceedings take place. And this DOES happen!!

Please do not try to outsmart the Insolvency Service, as they are now moving to a time where they WILL take criminal proceeding as necessary and will issue very long BROs for less minor infringements!!

Tim

tigerfeet2006

Thanks for that Tim. I know when MIL died recently it was one of the checks they did.

fermi

lol. I was going to reply, but can't add much to Tim's post.

I've seen a couple of people get caught out, so as said it can and most likely will catch up with you.

Poodle34

I've just read this thread with interest. BB&B, why would the OR allow the bankrupt to keep some inheritance? Surely all the money would have to go to pay off the creditors if was less than the amount of the bankruptcy? Also, is it down to the individual OR to make this decision?

BaldEagle

BB&B wrote: »

It has also been known that if the OR finds out about a large inheritance (even several years after) then the discharge CAN be suspended whilst criminal proceedings take place. And this DOES happen!!

Really? Several years after discharge? How so?

Ineedaname

I think he means that the inheritance occured during BR and was hidden but the OR found out a few years later... that's how I read it anyway.

wookie999

Good thread, with reference to IPA following JCS1 Post , if say after Discharge you where to inherit a lump sum, is it only the intrest on the lump sump, or will they take more, i personally would inform the right away, but would be interested on the rules on this one

Ineedaname

I would assume it would be anything available from the inheritance to cover the remainder owing on the debts plus OR fees.

For instance, if the BR debt was £20k and inheritance £50k then I reckon you'd have some left after paying OR fees as well.

If the BR debt was £20k but the inheritance only £5k then you would lose the lot as it doesn't cover what you owe anyway.