Help with elderly mothers bankruptcy B136 received

Kjy2021

• Evening, I’m writing on behalf of retired mother, she was made bankrupt in Jan 2022 after my father died and we found that he had taken loans / credit cards even added her as guarantee for a business loan, she was totally unaware of all of these as didn’t have her own money etc or deal with any correspondence. This was all explained for the bankruptcy they didn’t have any assets to pay the debts and she only gets state pension and lived with my grandma in her property then she dies in Oct 2022 and the house was left solely to my mother. We had no contact from the trustee until recently and they have applied for a restriction against the land and have just received a letter from the land registry B136(tib) and have a deadline to respond by 26th March. Question is can we object due to it being over 3 years since bankruptcy? Or is they anything else we should do to stop her losing her home. Also i have been intouch with the trustee solicitor today and he says he knows nothing about this application made from a different solicitor for the same bankruptsy! Im ao confused.                                   Many thanks  

sourcrates

It`s my understanding that with most bankruptcies, after you are discharged, you are free to inherit property/money etc with no restrictions whatsoever.

Was she automatically discharged after 12 months?

Kjy2021

It looks as though they didn’t discharge and reopened the case and started to investigate in Jan 23. But never responded to questions until end of last year when they made a visit and established that the house had been left to her 

Keep_pedalling

sourcrates said:

It`s my understanding that with most bankruptcies, after you are discharged, you are free to inherit property/money etc with no restrictions whatsoever.

Was she automatically discharged after 12 months?

It is the date of death that is important here and it seems to have been just 9 months after going bankrupt.

https://www.rochelegal.co.uk/why-bankruptcy-might-stop-you-receiving-an-inheritance/#:~:text=It's%20important%20to%20note%20that,and%20their%20estate%20being%20finalised.

Kjy2021

Probate was given in June 2023

Keep_pedalling

Kjy2021 said:

Probate was given in June 2023

I don’t think that helps, it’s the date of death that counts. Who were the executors? 

Kjy2021

my mother was 

Keep_pedalling

Kjy2021 said:

my mother was 

Which unfortunately makes her doubly resposable.

https://www.baker-law.co.uk/site/blog/baker-law-legal-blog/what-happens-if-a-beneficiary-is-bankrupt

ManyWays

The date of probate isnt relevant, nor is the fact that she is now discharged.

As her mother died while she was undischarged, this became "after-acquired property", see https://www.gov.uk/guidance/technical-guidance-for-official-receivers/36-after-acquired-property.
"The official receiver, as trustee, has 42 days, beginning with the day on which it first came to their knowledge that the property in question had been acquired by, or had devolved upon, the bankrupt in which to make the claim in writing."

She should have notified the Official Receiver about the death and likely inheritance. Did she say anything at all to the OR or the OR's office, on the phone or in working about this? 

RetiredTaz

ManyWays said:

The date of probate isnt relevant, nor is the fact that she is now discharged.

As her mother died while she was undischarged, this became "after-acquired property", see https://www.gov.uk/guidance/technical-guidance-for-official-receivers/36-after-acquired-property.
"The official receiver, as trustee, has 42 days, beginning with the day on which it first came to their knowledge that the property in question had been acquired by, or had devolved upon, the bankrupt in which to make the claim in writing."

She should have notified the Official Receiver about the death and likely inheritance. Did she say anything at all to the OR or the OR's office, on the phone or in working about this? 

I don't think the OP's mother has died. The help/advice is for OP and their mother.

sourcrates

On re-reading the original post, Grandma passed away some 9 months into the OP`s Mothers bankruptcy.

The question is, did they inform the OR of the inheritance or not? 

Failure to do so could have quite severe consequences as its a "contempt of court".