Bankcruptcy/IVA

castle96

..... solicitor is distributing an Estate and needs to write cheques. They willl do a bankcrutcy search on a beneficiary prior to issuing a cheque.

Do they do/NEED to do an IVA search for any potential debts? Does a positive result 'stop' them issuing the full amount?

Billxx

I am not certain but I imagine the solicitor is making sure that the beneficiaries will actually get the money.  If a cheque was paid into an account associated with a bankrupt, and it owed money to the bank, the bank could take it.  So I think they are doing this to protect the beneficiaries.

Others with more expertise may have a different view.

RAS

The Individual Insolvency Register reports current and recent bankruptcies, IVAs and DROs. So only one check is needed.

The debtor will have to report their inheritance and may well end up paying the full debt and the IVA fees from it.

castle96

Doesn't an IVA completely 'wipe out the debt'? ( I've never understood how!). Sole director/limited Company

Keep_pedalling

I would have thought aany professional executor would check before distributing the estate and IVA appear on the same register so they will see it. The solicitor may pay the beneficiary and leave them to declare it or more likely they will deal with the insolvency practitioner.

https://debtcamel.co.uk/inherit-dmp-dro-iva-bankruptcy/

RAS

Is this a repeat of your previous queries? Last time you said it was a Creditor's Voluntary Liquidation. 

castle96

Revision - sorry, it is a "creditors voluntary liquidatio", not an IVA

RAS

Have you been to www.gov.uk/liquidate-your-company 

You need to start by reading that because you've been asking everyone the wrong questions multiple times over the last year.

Keep_pedalling

castle96 said:

Doesn't an IVA completely 'wipe out the debt'? ( I've never understood how!). Sole director/limited Company

With an IVA your creditors agree to be paid a certain amount in instalments over a 5 or 6 year period and once that is up they can’t claim any more. If on the other hand you inherit money during that period there will be a clause in that agreement that means you pay more or the entire debt. 

RAS

Correct but the OP's son doesn't have an IVA. He would up a company, voluntarily.

castle96

true. I am looking at my will. I don't want his share 'wasted'. It could go to his 2 brothers and they could sort between them (hopefully!)