Best ways of checking for bankruptcy

la531983

https://forums.moneysavingexpert.com/discussion/comment/82020280#Comment_82020280

Not sure if its changed but I am not sure if the Gazette actually confirms if someone is discharged, remember if they have there is no issue them receiving the money.

Philip_P

https://forums.moneysavingexpert.com/discussion/comment/82020675#Comment_82020675

I'm thinking of doing that myself. The gov.uk register also states the person's DOB, which helps to narrow down the search.

Philip_P

Internet searches have also advised me that in addition to performing the check, it's also advisable to get beneficiaries to declare in a written statement that they've not been bankrupt or held an IVA, and sign for it, before handing over their money.

I'd be grateful for any comments on this, or help with actual wording of this statement/declaration

Jude57

https://forums.moneysavingexpert.com/discussion/comment/82038514#Comment_82038514

Just to clarify, if someone has at some point been declared bankrupt, been subject to an IVA or DRO (Debt Relief Order) but has been discharged, then unless they are still subject to bankruptcy restrictions, they are entitled to receive their inheritance. Personal bankruptcy discharge is usually automatic at one year, although Income Payment Agreements/Orders can last for a total of 3 years from the date of bankruptcy. A DRO if successfully completed is also discharged at the one year point. IVA's last longer, typically 5 or 6 years if successfully completed. You have no legal right to know whether the beneficiaries have EVER been subject to a form of insolvency. Indeed there are very few official bodies who do have that right.

It seems to me that if you're seeking a legally binding written statement from beneficiaries, it should be in the form of a Statutory Declaration, sworn before a Commissioner for Oaths (most High Street solicitors provide this service for a fee) and the wording would need to be along the lines of "I declare that I am not currently, nor do I have any knowledge or indication that I am likely within the next 12 months to become, subject to any form of insolvency restrictions". The Commissioner for Oaths should be able to advise on the right wording.

Philip_P

@Jude57

Thanks for your help.

Should any declaration from residuary beneficiaries also include acceptance of the estate accounts accuracy?

For example "I, Joe Bloggs, accept these Accounts as a true and accurate account of the estate and accept my share as set out above on that basis as a full and final settlement of any claims that I may have against the executors and/or against the estate"

Savvy_Sue

https://forums.moneysavingexpert.com/discussion/comment/82050779#Comment_82050779

I think this has been discussed before, usually by someone being asked to sign such a declaration when they have no way of knowing whether the accounts are accurate or not. In the situation I recall, the beneficiary was unsure the declaration was true and had no intention of signing.

Do you think anyone is likely to argue the point, for some reason?

user1977

How much value is a statement by somebody that they're not bankrupt? I mean, they would say that, wouldn't they? Or is it sufficient to show that the executor has at least thought about the issue?

Jude57

Knowingly lying in a Statutory Declaration sworn before a Commissioner for Oaths can be deemed an offence under the Perjury Act 1911 with resulting criminal penalties.

Jude57

Again, I'd recommend having a solicitor draft the wording of any statement to ensure both parties are protected. I, personally, wouldn't sign anything saying that I accepted as accurate accounts I hadn't seen and had no part in compiling but perhaps I'm overly cautious. I don't really see the need for such a statement unless, as @Savvy_Sue asks, you have reason to think any of the beneficiaries are likely to later dispute the amount of their share of the inheritance.

Philip_P

Thank you all once again. I've taken the advice of the Which? Legal Service and one of their solicitors advised me on the wording of the declaration and said to use the IIR for the insolvency check. Is the insolvency status at the date if death the important date, or at the date of distribution?