Question for Debt Doctor please

moyilla

Hello,

As I have posted before, I believe I am going to receive some inheritance from my grandmother,(the figures have been changing dramatically), it is half of my late mother's share.

I am still as yet undischarged, although my OR has started the early discharge process dated from 6th September. If my calculations are correct then if no objections are received from creditors then I should be discharged from 4th October

Anyway, things are moving quite quickly now on the house sale side of things, BUT I have been informed that the buyer of the house solicitor wants to do credit checks on both myself and my brother to check for bankruptcy:eek::eek::eek:

Is this the correct procedure? If so then am I at risk of losing what I may receive? As I also mentioned before I have a severely disabled daughter and this money would help with equipment and possibly a vehicle with a ramp/lift.

Can you advise as to what I should do?

Sorry for the long post but I am really anxious about the whole thing, I donot want to get into any trouble with the OR nor do I want to lose any money that would greatly help.

fiveyearplan

I personally have never heard of buyers doing a credit search and I would object. They aren't loaning you any money. It would be more apt if you did a credit search on them once you entered into negotiations - to make sure they were a serious buyer. What a cheek.

backontheup

fiveyearplan wrote: »

I personally have never heard of buyers doing a credit search and I would object. They aren't loaning you any money. It would be more apt if you did a credit search on them once you entered into negotiations - to make sure they were a serious buyer. What a cheek.

Totally agree on this - and using it all as a stalling mechanism. you really dont want the will going through while you are undischarged as you will have to tell the OR. Really pedal for time on this one

moyilla

Yes that is what I thought it should be the other way around.

What would you do, refuse?

fermi

The rules on "after acquired property" state that it is when you become eligible for any inheritance (i.e. date of death) that dictates whether it can be claimed by the OR/Trustee, NOT when payment is made or decided upon.

http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/A/AfterAcquiredProperty.htm

xi Can the trustee claim property due under a will?

The trustee can claim an interest under a will which devolves upon the bankrupt before discharge. This means that if the author of the will (the testator) dies during the period prior to discharge of the bankrupt, the trustee can generally claim property bequeathed to the bankrupt under the provisions of section 307.

However, if the will sets up a protective trust the trustee will not be able to claim any property covered by the trust for the bankrupt’s estate. A protective trust usually gives an individual a limited right over something and allows them to use it without giving the right to sell the item in question. It is most commonly used in relation to freehold or leasehold property and allows the beneficiary under the will to live in the property, usually for life, without allowing them the right of sale. Legal advice may be needed to decide whether a protective trust has been created or not.
In all cases, notice of the bankruptcy order (NORD1) must be given to the trustees/executors of the will as soon as possible. If the official receiver becomes trustee a second notice should also be sent in duplicate, with the trustees of the will being asked to return one copy receipted for the file (form NEXE).

Notwithstanding the bankruptcy order, a bankrupt retains his/her right to challenge the provisions of a will under The Inheritance (Provision for Family and Dependants) Act 1975 and the trustee plays no part in such proceedings.

If this applies no amount of stalling will do you any good. Best to take legal advice if you can.

moyilla

My grandmother died in November 2005. It was only in April that my brother and I found out we were entitled to our mother's share.

To be honest no-one expected anything, they lived like complete paupers and the house had not one thing done to it since they bought it in 1950, so everyone assumed the house was all there was and it would be between my two aunts.

Does it make a difference that the date of death was 2005? I went bankrupt on 3 January 2007.

fermi

moyilla wrote: »

Does it make a difference that the date of death was 2005? I went bankrupt on 3 January 2007.

I would not have thought so, but I only know the info above plus the experiences that others have posted on forums such as this.

You really need to contact your OR and explain the full situation. They will not try to take this away from you if they are not entitled to do so, since you would be then within your rights to hit them back through the courts.

Conversely, it would be very bad for you to receive this money and then to find out at a later date that the OR/Trustee is seeking to recover it.

moyilla

Oh nothing is ever simple is it?

Ok, thank you for that reply. Do you know of anyone else that this has happened to? I have searched the boards and found some links but nothing that has strong similarities.

moyilla

Oh guy's i'm really lost as to what to do.
I've been trying to get through to CAB but always engaged

moyilla

I have spoken to MyVesta and they told me that it will not affect anthing to do with my bankruptcy.

Has anyone used them before for advice?

fermi

moyilla wrote: »

I have spoken to MyVesta and they told me that it will not affect anthing to do with my bankruptcy.

Has anyone used them before for advice?

Nope. But I've heard of MyVesta giving some shockingly bad advice.
Was your OR's office unavailable?