Inheritance after discharge?

miserableindebt

Can the IPA be instructed after discharge, if your circumstances change for the better?

shameless-about-money

miserableindebt wrote: »

Can the IPA be instructed after discharge, if your circumstances change for the better?

No, an IPA cannot be started after discharge.

Erikin_2

It is also worth bearing in mind it is not when you receive the inheritance that matters but the date when the person making the will died.

So if the person died when you are undischarged it matters not if the money is received after discharge.

shameless-about-money

I have been talking with a friend re being discharged and in an IPA and windfall - he agrees with me on this one.
It will also depend on the amount of money. If the windfall is £2k the OR might allow you to keep it. If the windfall is a win on the lottery and you invested it for income, then the IPA would be increased due to the investment!

Where the OR is concerned there is no escape!

I will be interested to see the official line from the Insolvency Service, although it will be full of blosh as usual, and will waffle a lot.

Will post the reply as soon as they send one.

shameless-about-money

Erikin wrote: »

It is also worth bearing in mind it is not when you receive the inheritance that matters but the date when the person making the will died.

So if the person died when you are undischarged it matters not if the money is received after discharge.

That is not quite the same position.

Scootw has been hit with this one. He went br, then found out that they were getting some increase in pay, backdated two years I think it was - about £2K. The OR will want all of it, unfortunately.

Re the IPA issue, we will wait to see the "official" line.

Erikin_2

“That is not quite the same position”

But it is the starting point – if the person making the will died before the discharge date it makes this discussion academic.

From the technical manual……..

“An IPA may be varied……….. The application to vary the IPA does not have to be made before the discharge from bankruptcy…………

….…. circumstance which may require the official receiver/trustee to make an application to court to vary the IPA would be where the bankrupt who is subject to an IPA is in receipt of a payment …….(either before or after discharge) which can be held to be within the definition of income..…. can be recovered under an IPA/IPO………..

Section 310(7…….. defines the income of the bankrupt for income payment order purposes as……….. every payment in the nature of income which is from time to time made to him or to which he from time to time becomes entitled……. “

Technically therefore, if the person making the will dies during the period of the IPA the money is deemed income and becomes a bankruptcy estate asset. What a trustee does will no doubt vary from case to case.

wherediditallgo

I haven't seen anything to change the fact that, if you sign up for an IPA you agree to be bound by its terms, which include disclosing any change of circumstances during the period the IPA runs for. It's up to the OR what they do with the info, but you're required to disclose it in the first place. When they find out what you've done, saying anything similar to "But I thought that... ", "I was told that" or "I read that..." won't get you very far, because it's what you agreed to when you signed the IPA that matters. No matter how hard things already are, the OR can make them a lot harder. If I get an IPA as a result of my bankruptcy hearing (just days to go now), I'll be sticking to its terms like glue. If I have any doubts, I'll be disclosing the info just to be on the safe side - I can do without the OR thinking I'm trying to hoodwink them.

An inheritance/lottery win wasn't your money in the first place. While you've got an IPA in place it's not yours until the OR says it is.

shameless-about-money

Got the reply from the Insolvency Service -



Thank you for your email yesterday.

Please note that the Insolvency Enquiry Line of The Insolvency Service
deals
with general, not case specific, queries relating to insolvency, as it
is
not in full possession of the facts of each individual case and cannot
provide advice, only information.

As an IPA can be varied at any time whilst it is in force, the trustee
can
claim the whole of the windfall under a one-off Income Payments Order.

I hope this is helpful.



Exactly as I thought originally!