Is my post-bankruptcy mum's money now safe?

VT82

My mum was bankrupt in 1998. She assumes it is discharged after all this time but does not have any paperwork. We cannot find her on the Insolvency Register.

However when she tried to cash in a pension pot of £35k in 2017, the pension provider informed the official receiver who then claimed it all and she never saw it. I assume this must be because the pot existed in 1998?

She came into some money through an inheritance in around 2016-17. So far she has been able to pay it into savings accounts and it has not been confiscated by the receiver. She was tempted to put it in the new NS&I 1 year bond but in the small print it makes reference to bankrupts and she is worried if she paid it in it would be immediately funneled to the receiver even though her bankruptcy was 25 years ago.

Can anyone advise on how certain she can be that this money will never be taken, and whether it would be safe to deposit in NS&I? Many thanks in advance.

kevker23

I'd be interested in peoples thoughts on the pension situation as well. I thought once discharged and any IPA was over (I assume that would have finished after a year inthis case) then any monies you received would not be claimed by the OR. It seems strange the OR owuld claim something 20 odd years after a bankruptcy

MorningcoffeeIV

kevker23 said:

It seems strange the OR owuld claim something 20 odd years after a bankruptcy

It's because it was a pre-bankruptcy asset.  It's standard. Bankruptcy is a line in the sand.

To the OP - any post-bankruptcy funds will be your mother's.

kevker23

Thanks morning coffee. SO what youre saying , is anyone with a private pension that was left alone from the bankruptcy, would never be able to take a lump sum from that pension? (apologies for slightly hijacking the thread)

luvchocolate

The pension rules were changed to safeguard pensions ...the above would not happen now 
My bankruptcy was 2012 and my pension was safe 
I've since taken 25% and annuity 

luvchocolate

The change happened May 2000

Minkym00

To clarify luvchocolate's point, a pension would not be claimed now, but would still be claimed if it pays out now, but the bankruptcy was before the change in the legislation in 2000. Hence why the OP's mother was caught.  

If the OP's mum is not on the Individual Insolvency Register then she has been discharged and the inheritance is hers.