Bankruptcy Suspended Indefinitely and Death.

smallandcute

Hi all,

I hope you can help. A friends parent passed away a couple of weeks ago and it has come to light they were bankrupt in the early 00,s. The discharge has been suspended indefinitely as notes say they were not complying with the OR and or terms of bankruptcy. Currently no will has been found and other parent is still alive, parents were married at date of death.

What, if anything, does my friend and their family need to do in this instance. Is it rare that a bankruptcy discharge is suspended indefinitely?

Thanks.

maxmycardagain

The surviving person will apply for probate, then it rather depends on the value of the estate

Minkym00

The legal obligation to deal with the OR passes to the deceases’s representative/s (usually the next of kin).

The OR will deal with their estate in just the same way, an bankrupt’s liabilities are not discharged upon death unfortunately. Is there any life insurance do you know?

smallandcute

Thanks for the replies. Is there a time limit the administrators of the estate need to contact the OR by and out of curiosity what would happen if they didn’t want to or refuse to comply with the OR? Just want to provide as many facts as possible as my friend knows what they are dealing with.

Minkym00

Not aware of a time limit. If they refused to comply with the OR then the OR would apply for their public examination. This means they would be summonsed to court and a judge would ask them to what the OR wants to know.

(FYI the summons would be served on them by an agent and, if they were able to hand it to them in person then it will have been “personally served”. I mention this because if they don’t attend a public examination after they have had a summons personally served, then the court will issue an arrest warrant).

Are there definitely assets? If there isn’t any then they need not worry about it.

ToxtethO'Grady

They would probably apply for an Insolvency Administration Order and can do this up to 5 years after the insolvent has died.


https://www.insolvencydirect.bis.gov.uk/casehelpmanual/D/DeceasedInsolvents.htm

TheGardener

smallandcute wrote: »

Thanks for the replies. Is there a time limit the administrators of the estate need to contact the OR by and out of curiosity what would happen if they didn’t want to or refuse to comply with the OR? Just want to provide as many facts as possible as my friend knows what they are dealing with.

As part of the probate process - if its done by a solicitor - a death notice is usually placed in the London Gazette and a local paper, so if this is done - the OR will know and will contact the solicitor. If no notice is placed and the death is subsequently discovered, there is a risk that those responsible for managing the deceased's estate could become personally liable.