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rogers
Starting Member
3 Posts |
 Posted - 31 October 2008 : 16:46:57
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| I am thinking of declaring myself bankrupt with combined bank loan and credit card debts of approx £55000. I have no assets at the moment but am in employment. However, what would happen if over the course of the bankruptcy I were to inherit property? Would the terms of the bankruptcy be changed and the property sold to cover the debts? Many thanks |
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Nat
Junior Member
367 Posts |
Posted - 31 October 2008 : 17:01:07
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Hi Rogers and welcome
I'm not experienced in the property side of things at all. It might be worth you speaking to one of the experts i'm sure one will be along shortly.
This site is a huge help so kep posting and reading other threads, you really are not alone.
Nat |
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John
New Member
United Kingdom
73 Posts |
Posted - 31 October 2008 : 17:24:39
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Hi
if you received an inheritance whilst bankrupt the OR is at liberty to claim it.
If it is a property and you are one of a few beneficiaries the OR can force the sale which would not go down well with the other parties as you may get a lower price.
If this is a real possibility then I would look at trying to change the will in favour of your spouse or other trusted relative.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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pix1
Average Member
689 Posts |
Posted - 01 November 2008 : 06:27:47
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rogers,
The situation is clear cut. When you go BR you will be undischarged for 1 year and then automatically discharged (you could be discharged earlier than this but it depends on the circumstances). From the date of the BR until your discharge any assets you already have or which come into your possession will go into the BR estate to be disposed of by the OR. If, for example, you inherited £250000 you would lose around £55000 of this (plus a percentage for the OR's costs) and keep the rest. The good news is that if you inherited after the date of your BR discharge this would be an After Acquired Asset and you would keep it. There is no need, by the way, to mention in your BR forms or interview that you MIGHT inherit money only if you HAVE inherited.
I believe, as a related point, that if you ended up with a BRU/BRO (which only happens in 2% of cases as I understand it) you would still keep any AAA's but someone else on the forum might be able to confirm this.
If, also, prior to BR you were in someone's Final Will & Testament but then were not on the date of and during the undischarged BR and then were again after the discharge BR I don't know if the OR could then look into it at a later date and argue that any inheritance was not to be classified as an AAA. An expert might be able to advise on that.
So, really, you only need not to inherit for up to 1 year from the date of the BR order. |
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rogers
Starting Member
3 Posts |
Posted - 03 November 2008 : 12:13:47
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Thanks for all the advice. Much appreciated. I understand the situation much better now.
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 03 November 2008 : 12:50:43
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Can I just add that if you inherit after you are discharged but the person died while you were still BR the OR would still be entitled to claim the inheritance.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 03 November 2008 : 12:55:44
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Good point Skippy.
lots of folk don't realise this. the moment someone dies their heirs inherit even though they may not actually know there is any windfall
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
For a Free Impartial Review before taking the leap call me @ Reviva UK
www.revivauk.com |
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I am thinking of declaring myself bankrupt
