Bankruptcy and inheritance etc

Salad_2

I read that if you're declared bankrupt you can lose any assets gained over the period such as an inheritance etc.

Would you lose the whole amount? What about savings from your wages?

Anyone have any more info?

Rafter

Bankrupcy means wiping the slate clean and clearing all your debts.

You can't pick and choose though.  Your savings (whether from inheritance or wages) all need to be offset against your debts.

Not sure what your circumstances are,  but if you are in the position of struggling to pay debt as well as having savings at the same time,  that seems a bit unusual.  You are probably earning far less return on your savings than you are paying on your debts.

If you debts are much much higher than your savings,  and even by using your savings to pay off some debt you will also be in difficulty then you may want to consider bankrupcy or at least an arrangement with your creditors, but you will not be able to access credit for up to 6 years afterwards (for sensible interest rates anyway).

You should really go and talk to citizens advice or a debt councelling service though.


R.

Salad_2

I don't have any savings, but am wondering what happens to any money that comes in later if I become bankrupt.

It's quite likely that I will inherit something within the period.

Debt_Free_Chick

You have a duty to tell the Official Reciever about any assets you acquire after you are made bankrupt but before you are discharged. If you receive an inheritance during this period, the OR could use it to pay off your debts.

See this guide, especially 11(c)

http://www.insolvency.gov.uk/guidanceleaflets/guidetobankruptcy/gb8-13.htm#12.%20Bankruptcy%20restrictions%20orders%20and%20undertakings

Salad_2

Thanks