Discharge indefinitely delayed

Watchful

Does anyone know what this means?

I was recently buying a house, and did all the credit checks, etc. but the bankruptcy search came back showing that my mother is currently an undischarged bankrupt with no discharge date.

There is no mistaken identity, and she was bankrupt at the time, but had no knowledge of any special terms - but it was quite a few years ago, and she can't remember in detail, and as far as she was concerned it would have been automatically discharged.

Anyway, I apologise if the next bit is a bit sick. In the next couple of years, it's pretty likely that my mother will end up inheriting her parents' estate, which will be of significant value.

My mum's financial situation is increasingly looking dependent on this. She's due to retire soon, but she's still got a few years left on her mortgage, and her pension lump sum alone isn't going to cover the value of the loan. She's also got a lot of credit cards and although she's careful to minimize the interest, it isn't clear how sustainable this constant "stoozing" is.

So, what is the significant of this "indefinitely delayed" discharge? I presume this is some sort of mistake. It certainly doesn't appear to have affected her in any way, but I would certainly not want it to be something that suddenly jumps up to bite us. At the same time, neither of us want to "stir things up", in case it causes problems with her mortgage, and she loses yet another house.

fermi

Discharge is never suspend truly indefinitely. It's usually done by the OR/trustee on application to the court to suspend discharge indefinitely until a certain condition is met. Usually due to non cooperation, failure to provide required information or assets etc, and discharge would be granted once the person cooperates.

Have you looked on the online register to see if she is still there and what her status is?

Here --> http://www.insolvencydirect.bis.gov.uk/eiir/

If her discharge has been suspended it's not going to go away until sorted.

Mr_F_Dorsetty

It's a mere shot in the dark, but is it possible that your mother mentioned her parents estate as she should have at the point of BK?

That would nicely explain the 'indefinitely delayed'

As fermi correctly says, you'll have to deal with it. Myself I'd guarantee it is no mistake and if it were me I'd be contacting the OR office responsible and be asking what and why.

Best of luck with it all

longtermplanner

When did you mum go bankrupt?

Are you saying that since then she has managed to run up a lot of credit card debt?

Her parents - are they still alive? Or have they died (if so when?) and she is awaiting distribution of their estate?

dojoman

Mr_F_Dorsetty wrote: »

It's a mere shot in the dark, but is it possible that your mother mentioned her parents estate as she should have at the point of BK?

That would nicely explain the 'indefinitely delayed'

As fermi correctly says, you'll have to deal with it. Myself I'd guarantee it is no mistake and if it were me I'd be contacting the OR office responsible and be asking what and why.

Best of luck with it all

Why would she have to do this? If her parents/parent is still alive at the time of BR, then why would she need to inform them of something that may not happen.

arealfarmer

I had a restriction placed on the house ( this was before the OR decided there was some equity that they could go after - I ended up borrowing from friends and family to buy back that interest ) The restriction was put on in the first instance of the bankruptcy , at the land registry . It came to light a few years later when my ex was buying me out . A phone call to the OR got it removed as it was just an oversight .

Watchful

longtermplanner wrote: »

When did you mum go bankrupt?

Are you saying that since then she has managed to run up a lot of credit card debt?

Her parents - are they still alive? Or have they died (if so when?) and she is awaiting distribution of their estate?

She went bankrupt about 8 or 9 years ago.

That is correct. She has now run up a lot of debt, personal loans, credit cards, car finance. She has also moved in with a new partner and they've got a joint mortgage on the house.

Her father is still alive, but is increasingly frail following the death of his wife (her mother). My mother stands to inherit the house and the remains of savings/investments.

Have you looked on the online register to see if she is still there and what her status is?

Yes. She is still there. Listed as undischarged bankrupt. "Discharge indefinitely suspended"

She doesn't remember much about the bankruptcy, but she was told that the discharge is automatic after a year. As far as she remembers, she never met or spoke to the official receiver. She just got the letter from the court, but never actually attended any hearings.

Part of the issue is that she wasn't involved with any finances. She had just put her name forward as a company director for a friend's business venture, but didn't know anything about the business or finances. Interestingly, her address on the insolvency register is listed as the friend's address, not her address.

fermi

Watchful wrote: »

She doesn't remember much about the bankruptcy, but she was told that the discharge is automatic after a year. As far as she remembers, she never met or spoke to the official receiver. She just got the letter from the court, but never actually attended any hearings.

Part of the issue is that she wasn't involved with any finances. She had just put her name forward as a company director for a friend's business venture, but didn't know anything about the business or finances. Interestingly, her address on the insolvency register is listed as the friend's address, not her address.

Discharge is automatic if you cooperate with the OR. However, I guess from the above that letters may possibly have been sent by the OR to the friends address.

The OR would certainly not just do nothing after the bankruptcy order was made by the court. They would likely have requested she come into their offices for a face to face interview at the least. If she failed to respond to any requests then it's quite likely that they would have applied to have her discharge suspended indefinitely.

As of this moment she is still an undischarged bankrupt. Only way to sort that is to get in touch with the OR/trustee listed on the register.

silvercar

That is correct. She has now run up a lot of debt, personal loans, credit cards, car finance. She has also moved in with a new partner and they've got a joint mortgage on the house.

Be aware that this is going to open a can of worms. By the sound of it she has run up new debt, obtained loans etc and a mortgage while she has been an undischarged bankrupt.:eek:

Is she still in touch with the friend? Would the friend be prepared to provide a statement that she hid the bankruptcy from your Mum?

sacha1dog

If she is an up discharged BR, how did she manage to obtain any credit?

nonnatus

My thoughts exactly Sachadog!!??


I'd been discharged for 7 years when I took out a Joint Mortgage last year and had a RIGHT struggle. A great Broker eventually found a fitting Mortgage but we pay WAY over the odds in interest to everyone else. We were rejected by MANY Mortgages before hooking up with the Broker.


How on earth has your Mum managed to get into Credit Crisis again? She's either a very slow learner, or is being severely manipulated by someone...