Best ways of checking for bankruptcy

Philip_P

Hi all.

I'm an executor for my wife's aunties estate and we are approaching the stage of distributing the proceeds to the beneficiaries. Several of the beneficiaries are not that well known to me, and I'd like to check them for bankruptcy. From my research it appears that there are three different ways of doing this - on gov.uk, the Gazette, and the Land Registry. It seems that the first two are free. Can anyone offer an opinion on which one of them is the most reliable source of information? Do I need to search in Scotland and NI too?

Finally, one of the beneficiaries lives in the USA, is it possible to check him for bankruptcy too?

Many thanks in advance ☺️

Brie

I'm curious as to why you need to check if anyone is bankrupt.

The only one I'm familiar with is the gov.uk site.

not sure about the US but you might need to do a search by state or even county.

elsien

Surely it’s the beneficiaries responsibility to inform any relevant parties if the bequest affect any previous or current bankruptcies?

Keep_pedalling

I would use the insolvency registry

https://www.insolvencydirect.bis.gov.uk/eiir/

Unless a beneficiary is a resident of Scotland or NI there is no point in checking there, and I would not bother with the US resident.

poseidon1

An interesting post, with begs the question whether many DIY executors are even remotely aware of their strict duty to check a beneficary's bankruptcy/ insolvency status prior to distribution.

Regarding , the OPs question related to the overseas beneficiary, there are (paid for) services that address this examples below -

https://blanchardsltd.co.uk/bankruptcy-search/

https://www.angliaresearch.co.uk/international-bankruptcy-searches-explained/

As to whether the costs of dealing with this aspect should fall to the estate, case law indicates its a general executors' expense, rather than something chargeable to the beneficiary concerned - the following brief exchange on the trust discussion forum explains -

https://trustsdiscussionforum.co.uk/t/international-bankruptcy-searches/15267

Boohoo

https://forums.moneysavingexpert.com/discussion/comment/82018668#Comment_82018668

Not sure if this relivent now but 20 years ago and aunt died (no children) and left myself and my 3 siblings about 8 grand each.

My brother was bankrupt and not sure if still under IPA or whatever it was called and never got any as the solicitor dealing with the estate checked all beneficiaries for bankruptcy.

Ask him about why and reply was to cover himself and I think the money was paid to the IPA/bankruptcy people to go towards the debt.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82018689#Comment_82018689

Entirely relevant now, nothing has changed with regard to this strict duty which has a very long historical basis.

As indicated, its one of the more archane aspects of estate administration likely to catch a DIY executor unaware.

la531983

Worth noting, in England anyway,

Discharged bankrupts: If you are legally discharged from bankruptcy (usually after 12 months) before the inheritance passes, the money belongs entirely to you.

I have absolutely no idea how it works in the USA, and no idea if you would be going down a rabbit hole to even find out.

Philip_P

Thanks for all your comments. It seems that the Land Registry search is the only one that supplies you with a report, hence the charge, and is the most comprehensive. However, the Gazette and IIR are, apparently, the official public records of bankruptcy, so I might just use those.

RAS

The Land Registry may include details of second charges or deeds of trust, but the only way really of working out if it involves insolvency is to work out why the charge or restriction was registered.

Unless you spot the name of an Insolvency Practitioner, I can't imagine any of the institutions talking to you.

Skint_yet_Again

I searched for free on gov.uk and took a screenshot which I intend to print and file with executor accounts