After acquired assets

Minkym00

ikati5 said:

A solicitor who deals with bankruptcy told me, They will appoint a trustee because there is an asset, which will incur fees. Also, the money will be paid Into the OR bank account and taxed.
I currently have no assets, therefore no trustee.

Ok. So they’ve made an assumption here. I would imagine it not actually likely that a new trustee (an Insolvency Practitioner) would be appointed. IP’s are appointed for two reasons - firstly because the majority creditor requests it (and they have the legal right) or, secondly, if there is an asset that the OR cannot reasonably deal with or is onerous i.e a tenanted property. An IP is normally only appointed if there is a property involved. In this case the money there is no complexity to the asset and you can make the argument that it is not in anyones interest for an IP to be appointed as the fees incurred will negatively impact the funds available for creditors. 

I think your first assumption that the OR will claim it, deduct the fees, pay the creditors and give you the change is a reasonable expectation of how this will go. You can then apply for an annulment.

ikati5

Thank you.
I have emailed the The office dealing with the BK and asked if there are any options available to me.
It appears they are the only ones with the information I need and I have nothing to lose, if I don’t do anything, I will have nothing at all.
The advisor at ND said, ‘It’s just bad timing!’ So they were not only unhelpful but also insensitive!

Minkym00

Please update the thread when you know the situation as it may help others at some point. 

For your info, the OR will take 15% of the inheritance off the top, then £8k in fees, and then your creditors will be paid. You will get anything left over. If you need any advice on getting an annulment please come back and ask. 

ikati5

Hi
i have had a letter from the OR telling me how to go about an annulment and the fees etc.
the fees are £2775.00 plus £6000.00. They don’t mention a percentage but I have heard it’s 15 or 17%
application to the court is £95

It states, if someone is going to guarantor the money, like a solicitor (as in my case I suspect) they have to attend court!

I also have to have the money before court and that could take a year or more.

who would I ask about a lump sum Iva?

Minkym00

It’s a standard letter and it’s 15%. 

You won’t need a guarantor in your case. Once probate is granted the  solicitor will have to pay the money over to the OR. The only reason you would need a guarantor is if you are “securing the debts to the satisfaction of the court” and this is when a solicitor holds money and agrees to pay the creditors in order for a judge to agree to annul the bankruptcy order. It’s not applicable in your case as the money is already being claimed by the OR as your trustee. 

Forget about a lump sum IVA, it’s out of your hands - you won’t be paying your creditors, the OR will. 

ikati5

Do I have to give the OR the name of the executor and solicitor?
I am not happy about disclosing my financial status or lack of to the grieving widow.

Minkym00

You don't need to at this stage. Once you tell the OR they will send you a letter making a claim on it. But at some point the solicitor managing the probate will have to know. They will do a bankruptcy search on you before paying out in any case.
 

ManyWays

I can't imagine what this "tax" could be. Talking to a solicitor who specialises in personal insolvency is a good idea - but I am no9t sure the person you have spoken to is an expert. 

ikati5

Minkym00 said:

ikati5 said:

A solicitor who deals with bankruptcy told me, They will appoint a trustee because there is an asset, which will incur fees. Also, the money will be paid Into the OR bank account and taxed.
I currently have no assets, therefore no trustee.

Ok. So they’ve made an assumption here. I would imagine it not actually likely that a new trustee (an Insolvency Practitioner) would be appointed. IP’s are appointed for two reasons - firstly because the majority creditor requests it (and they have the legal right) or, secondly, if there is an asset that the OR cannot reasonably deal with or is onerous i.e a tenanted property. An IP is normally only appointed if there is a property involved. In this case the money there is no complexity to the asset and you can make the argument that it is not in anyones interest for an IP to be appointed as the fees incurred will negatively impact the funds available for creditors. 

I think your first assumption that the OR will claim it, deduct the fees, pay the creditors and give you the change is a reasonable expectation of how this will go. You can then apply for an annulment.

Thank you. I know some more about it now.
the fees charged by the ORs office will be £2775.00 plus £6000.00 plus the debt and if I continue with the bankruptcy an additional 15% of the asset as a realisation fee when it goes through their bank account.
If I go down the IVA route I can avoid the percentage but not the fees. If I go down the solicitor route he can negotiate fees with the court but I incur solicitor fees at £220 per hour.
These fees are standard non negotiable OR fees regardless of whether a trustee is appointed or not.
when I was given initial BK advice, I had no assets so none of this was explained.

Minkym00

Not sure what you mean by “if I continue with the bankruptcy an additional 15% of the asset as a realisation fee when it goes through their bank account”. The he inheritance will be claimed therefore it will be paid to the OR who will take a 15% trustee fee. It makes no difference if you apply for an annulment or not, the trustee fee is always claimed UNLESS the debts are paid by 3rd party funds. The inheritance is not 3rd party funds.