BRO/U and inheritance

aurion22

Not sure if this is the right place but a friend who is subject to a BRU may be about to inherit about £9000. Would this have to be reported to the Insolvency Service?
If not, could he open a savings account?
Thanks
Loretta

TheGardener

aurion22 wrote: »

Not sure if this is the right place but a friend who is subject to a BRU may be about to inherit about £9000. Would this have to be reported to the Insolvency Service?
If not, could he open a savings account?
Thanks
Loretta

Hi - Not quite the right place to post as you are 'hidden' in someone else's thread. However, If there is a BRU still in force then yes, your friend absolutely must tell the IS and if the BRU is still in place, he will probably struggle to open a savings account anyway.

lilybankrupt

I'm just wondering why a BRU / BRO would mean a windfall has to be declared, assuming the person concerned has been discharged?

I thought that a BRU was about various restrictions eg being a director but unrelated to income - no different to any other BR?

mattannar

lilybankrupt wrote: »

I'm just wondering why a BRU / BRO would mean a windfall has to be declared, assuming the person concerned has been discharged?

I thought that a BRU was about various restrictions eg being a director but unrelated to income - no different to any other BR?

I would say the main issue is when did the person die, if discharged at the time the OR does not need to know.

aurion22

TheGardener wrote: »

Hi - Not quite the right place to post as you are 'hidden' in someone else's thread.

It seemed relevant and I didn't want to start a new thread when this one was connected.

However, If there is a BRU still in force then yes, your friend absolutely must tell the IS and if the BRU is still in place, he will probably struggle to open a savings account anyway.

He's been allowed to open a savings account with the Credit Union. The BRU is still in place but he hasn't actually got the money .. just anticipating it following the death of an elderly relative.

fermi

aurion22 wrote: »

Not sure if this is the right place but a friend who is subject to a BRU may be about to inherit about £9000. Would this have to be reported to the Insolvency Service?

If they are discharged and the person passed away after their discharge, then no they would not have to tell the IS.

A BRO/U does not extend the period during which the OR can claim assets.

Jaffa45

TheGardener wrote: »

Hi - Not quite the right place to post as you are 'hidden' in someone else's thread. However, If there is a BRU still in force then yes, your friend absolutely must tell the IS and if the BRU is still in place, he will probably struggle to open a savings account anyway.

Incorrect answer.

A bru does not extend the bankruptcy just some restrictions .

Op - you can enjoy any windfall post discharge to your hearts content - bru/o makes no difference and you do not have to notify your OR

You can open a savings account where you wish too. They are bothered by a bru it seems

aurion22

Um .. the person who has died is a relative of the person with the BRU.

TheGardener

My apologies - the 2nd OP didn't say they were discharged I made an assumption that if the BRU was in place it may contain restrictions in assets/that they were un-discharged .
As for savings, I am a massive fan of CU's - I took it that you were saying he hadn't got a savings account but it seems he has?
The 2nd OP questioned if it was the right place to post - I only inferred they would get a better response if in a thread of its own.

Its been along day - but it sounds like I'm not the only one
I'll refrain from posting when tired.

fermi

aurion22 wrote: »

Um .. the person who has died is a relative of the person with the BRU.

Makes no difference. The OR can only claim an inheritance if the person passed away (relative or not) before you are discharged.

If they passed away after discharge, then they can't claim it and you don't have to inform them. A BRO/U does not prevent you being discharged, so has no effect on this.

If this person has not been discharged, or was not discharged when the person died, then they have to inform the OR. Later BRO/U or not.

Jaffa45

TheGardener wrote: »

My apologies - the 2nd OP didn't say they were discharged I made an assumption that if the BRU was in place it may contain restrictions in assets/that they were un-discharged .
.

A bru/o takes effect after discharge - one can't have both concurrently