Bankruptcy and Inheritance

jorobhm

My Great Aunt died 23 days before my parents 12 months of bankruptcy has ended leaving them her house. Will they have to pay all their debt off and could I buy the house for the amount of the debt so they can still live in the house? Any ideas?

dojoman

Unfortunately the OR will have an interest in the house as the GA died before the end of the BR. Depending on how much they went BR for, there is a possibility that they could get the BR annulled, but there will be a lot of extra costs to go on to that figure along with the original BR amount.

lazer

dojoman wrote: »

Unfortunately the OR will have an interest in the house as the GA died before the end of the BR. Depending on how much they went BR for, there is a possibility that they could get the BR annulled, but there will be a lot of extra costs to go on to that figure along with the original BR amount.

why unfortunately, is paying for your debts not a good thing? Would they not be happy that their creditors are receiving more of their money (which they presumably lent in good faith, with the intention of it being returned plus appropriate interest for allowing use of credit) back?

Getting the BR annulled would be the best solution for all concerned if possible

roger196

Why did GA's solicitors not advise her to change her will during the 12 month period?

dojoman

lazer wrote: »

why unfortunately, is paying for your debts not a good thing? Would they not be happy that their creditors are receiving more of their money (which they presumably lent in good faith, with the intention of it being returned plus appropriate interest for allowing use of credit) back?

Getting the BR annulled would be the best solution for all concerned if possible

Bad choice of words really, totally agree with what you are saying, but getting an annulment is not easy. Also we don`t know the actual reasons for their BR.

jorobhm

GA didn't know about the BR and parents didn't know about the inheritance. What about me buying the house to pay the BR?

debtinfo

fine in principle, the trustees only really care about the money rather that the actual property, you would need to pay at least the value of the debt plus all the fees and charges, you and your parents need to start talking to the trustee of the bankruptcy about how much that might be

SteveABC

dojoman wrote: »

Bad choice of words really, totally agree with what you are saying, but getting an annulment is not easy. Also we don`t know the actual reasons for their BR.

"Also we don`t know the actual reasons for their BR"

Absolutely. BR is not an easy option and for many of us we went BR, not due to reckless spending, but due to a series of unforseen changes in personal circumstances.

lazer

SteveABC wrote: »

"Also we don`t know the actual reasons for their BR"

Absolutely. BR is not an easy option and for many of us we went BR, not due to reckless spending, but due to a series of unforseen changes in personal circumstances.

But does the reason for it matter, if you now have the chance to pay off all your debts using an inheritance, it is obviously a good thing.

However, although i disagree with the inheritance not being used to pay the debts has probate been granted yet?

You could look into getting a deed of variation on the will, if your parents are the only named beneficaries, it should be straightforward enough to prepare a deed of variation so that you are left the hosue instead of them, although you would need to research if this has any implications re: Bankruptcy

debtinfo

They ain't going to let you do a deed of variation

Mistral001

If the great aunt had lived they would be still in a house that they did not own and thus could not be taken from them by the creditors. I think everybody gets the picture.