bankrupt then receiving inheritance - making a gift to avoid losing inheritance

southgrange

£30 k would have completely wiped my debts and I would happily have done so if i knew £30k was coming my way.

NeverAgain wrote: »

I don't think the OP doesn't do the general image of bankrupts much good by trying so hard to avoid repaying the creditors.

Why is this seen as such a last resort?

I'd have thought anyone with debts would be relieved and delighted to receive a windfall enabling them to pay what they owe.

Penelope_Penguin

thousandyard wrote: »

thanks everyone for your replies. they are much appreciated. im wonderring how the OR would become aware of my receivng an inheritance. yes unfortunately my mum died a couple of months ago.

Sorry to hear about you mother.

To withhold the existence of an inheritance from the Or is a serious offence, and not one which anyone here would recommend.

How much do you owe in total? as Skylight says, there may be a possibility of you making full and final offers to your creditors, or a lump-sum IVA.

debtinfo

also lying on your court forms is also a criminal offence and can lead to a prison sentence of up to 7 years

tigerfeet2006

Sorry to hear about your Mum, that must be so hard.

Unfortunatly the soliciters acting will do certain checks before distributing any monies and a BR search is one of them. When the BR is found they will contact the OR and arrange fo rthe money to go straight to them.

MichMoor

I can understand why you are thinking of doing this but before you decide to go down this line take necessary legal advice and at least know the consequances of what could happen if the OR gets wind of you sitting on 30K while undischarged!

ascot64

You don't say how much you owe but could you not use the inheritance to make full and final offers to your creditors thus clearing the debt and avoiding bankruptcy.

BB&B

When solicitors deal with inheritances, they are legally obliged to carry out certain checks against the beneficiary, and one of those is an insolvency check. If they 'fail' to do this they can (and have been) struck off, and also become personally liable as a last course of action. So believe me they DO CHECK!

If the OR finds that you have 'tried' to put an asset out of his reach, there are several options open to him, including (but not limited to)

• Issuing a BRO

• Taking the person who has the money to court to get it (the most probable route)

• Commencing Insolvency Proceeding against the person who has it (and yes that does include declaring ANOTHER person bankrupt)

• Oh and of course commencing legal proceedings against the person who 'tried' to hide the asset (and these can and do result in prison time!)

Last year the IS issued a warning to all people in or entering into bankruptcy NOT to attempt to hide assets, as the IS would now be taking all necessary actions (including criminal proceedings) against offenders, and they ARE DOING THIS

I know and appreciate loosing an inheritance in this way is painful, but to hide assets, to get debts written off when you have the resources to pay some or all of it off, to add costs onto people who do not try to play the system is tantamount to theft, and the IS is now taking that view!

Tim