Inheritance after Discharge

kbm271186

Good Morning,

After doing some research over the weekend, I wanted to just double check something..

In 2008 I went bankrupt and was discharged in 2009. Unfortunately a relative died in 2018 and I am one of the executors of the will and due to inherit some money.

We are due to sell the probate house and the solicitor we have instructed has asked on the form 'If I have ever been bankrupt.' I am obviously not going to lie, but I am under the impression that the date of death is key as to if the OR can take the money?

Thanks

thevdm

At the date of discharge you are released from your debts and no longer liable for them. As your relative passed away 9 years after the discharge then any inheritance would be safe. It is a bit of an unusual question, I would have thought 'Are you currently bankrupt?' would be more appropriate.

sourcrates

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 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.

paul_and_shark

What if you are discharged but paying an IPA ?

Minkym00

The reason they ask if you’ve ever been bankrupt is to check that you have been discharged. The OP has confirmed they have, so the inheritance is a post bankruptcy asset and theirs to keep. Some bankrupts don’t engage with the OR and their discharge is suspended (and can be for decades!) so it’s the right thing to ask.

Prucilla

My Dad was bankrupt it must of been in perhaps 2005. He paid an IVA. For years and years - this must have been paid off about 4 years ago or so. I can't remember exactly but I remember him saying he had finally paid it off.

He died in April and I submitted a PPI claim in his name (didn't think about it before). He had about £1,000 owing to him. I just contacted Barclays bank to find out where this has gone and it hasn't been paid yet but they said it had been claimed by the Official Receiver and in due course would be paid to them.

I'm confused as I thought he had finished paying? I am worried now as he left about £2,000 which I used to pay for a very basic cremation. Would the receiver take this also?

Also my dad's death was awful and there is a medical negligence claim in process. Will the OR take this as well?

Any help much appreciated.

JCS1

Prucilla wrote: »

My Dad was bankrupt it must of been in perhaps 2005. He paid an IVA. For years and years - this must have been paid off about 4 years ago or so. I can't remember exactly but I remember him saying he had finally paid it off.

He died in April and I submitted a PPI claim in his name (didn't think about it before). He had about £1,000 owing to him. I just contacted Barclays bank to find out where this has gone and it hasn't been paid yet but they said it had been claimed by the Official Receiver and in due course would be paid to them.

I'm confused as I thought he had finished paying? I am worried now as he left about £2,000 which I used to pay for a very basic cremation. Would the receiver take this also?

Also my dad's death was awful and there is a medical negligence claim in process. Will the OR take this as well?

Any help much appreciated.

The right to take action about the PPI lies with the Official Receiver, and they have claimed it. It's nothing to do with the IPA that he had.

The technical answer is here

https://forums.moneysavingexpert.com/discussion/3766585/ppi-claims-after-bankruptcy


Sorry for your loss.

Prucilla

JCS1 wrote: »

The right to take action about the PPI lies with the Official Receiver, and they have claimed it. It's nothing to do with the IPA that he had.

The technical answer is here



Sorry for your loss.

Thank you so much - much appreciated. Feel reassured.

Best wishes.