Discharged Bankrupt with BRO

Paulalfc

I’m just after some advice/guidance really. I was declared bankrupt in May 2015 and was discharged May 2016 but with a 5 year BRO. Unfortunately I lost both my parents last year and we are in the process of sorting out the will etc.

My question is when I went bankrupt at the time, I was living in the same property that I am now but didn’t own it as my parents did, but as part of my parents will, the house is now part of my inheritance and will be signed over to me. I wanted to know what implication this has on my bankruptcy as I would be gaining an asset. Will the OR have an interest in it’s I’m a discharged bankrupt but still have 2 years left to go on my BRO. I’m worried I’m going to lose the house as part of the bankruptcy.

Has anyone been in the same situation before and what was the outcome?.

TIA

RonoB

Sorry for your loss.
You should
]
A reader has asked if my recent article on redundancy payments and bankruptcy also applies to inheriting money or assets when you are bankrupt. The answer is “Yes”, but there are a few extra points to consider.

The date of death is the key date
You become entitled to an inheritance as soon as the person has died, so it legally forms one of your assets from this point. There are three cases depending on when the date of death is in relation to your bankrupty :

the date of death is before you went bankrupt Here your inheritance is an asset that you owned when you went bankrupt and it therefore belongs to the OR.
the date of death is after bankruptcy but before discharge Here the money you inherit is an “after-acquired asset”. You should to notify the OR about your inheritance and the OR will claim it.
the date of death is after discharge In this case the money is all yours. The Official Receiver can’t claim any of it and you do not need to notify him about it, even if you have a BRO or a BRU.

TheGardener

RonoB wrote: »

... three cases depending on when the date of death is in relation to your bankrupty :

the date of death is before you went bankrupt Here your inheritance is an asset that you owned when you went bankrupt and it therefore belongs to the OR.
the date of death is after bankruptcy but before discharge Here the money you inherit is an “after-acquired asset”. You should to notify the OR about your inheritance and the OR will claim it.
the date of death is after discharge In this case the money is all yours. The Official Receiver can’t claim any of it and you do not need to notify him about it, even if you have a BRO or a BRU.

Thanks for an great answer.
If there is an IPA in place: can the inheritance be claimed as part of that either was 'income' or if the circumstances change - for example the BR was paying rent but now owns the house so no rent due?

Hardly_Quim

Discharged means discharged!