Inheritance whilst bankrupt

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Hi,

This is a hypothetical question but one I feel I need to know the answer to before potentially filing for bankruptcy.

If someone is bankrupt and then has inheritance come to them in the next 6 year period, does that inheritance pass down to them without any problems or does that inheritance have to go and pay off all the bankruptcy debt?



Thanks in advance for any answers.

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  • sourcrates
    sourcrates Posts: 29,000 Ambassador
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    Its my understanding you can keep any inheritance you receive if the person who leaves you the money dies after you are discharged.

    If this occurs before discharge, within the first 12 months, then the money must go to the OR.

    Once you are discharged, you are freed from any bankruptcy restrictions.
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  • Iansellers
    Iansellers Posts: 49 Forumite
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    Its my understanding you can keep any inheritance you receive if the person who leaves you the money dies after you are discharged.

    If this occurs before discharge, within the first 12 months, then the money must go to the OR.

    Once you are discharged, you are freed from any bankruptcy restrictions.
    Many thanks for the information.
  • cymruchris
    cymruchris Posts: 5,320 Forumite
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    I can confirm the above - during the bankruptcy period - it would go to the OR - and once discharged, it would be yours to keep.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • Iansellers
    Iansellers Posts: 49 Forumite
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    I can confirm the above - during the bankruptcy period - it would go to the OR - and once discharged, it would be yours to keep.
    Appreciate that, thank you.
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