I was declared a personal bankrupt last October and have not been discharged yet, in February a relative died and has left money in his will to myself. I want to know if i will have to repay my debts as I have not been discharged yet. There is some question as to if the will is valid as it comes under Scottish Law and will take a long time to be sorted out. I still get demands for my debts and wondered if i have to repay the debt would it be legal for me to approach my creditors and negotiate with them. One of my debts was 12000.00 and i have received a letter saying they will settle for 1700.00. If i found the will was valid would i be breaking my conditions of bankruptsy if i paid this.
Unfortunately the inheritance will start from the date your relative died.
As this is during your period as an undischarged Bankrupt with would fall under the windfall provisions of your bankruptcy.
You could go down the annulment road.
You could do this one of two ways. 1. propose a Voluntary arrangement based on the inheritance monies in full and final settlement of your debts, The Bankruptcy would then be removed as if it had not existed in the first place.
2. You could structure cash settlements directly with your creditors and then apply for annulment. Your creditors would need to except the offer in full and final settlement and also waive their right to statutory interest. You would then have to pay the trustees fees for the bankruptcy before you could apply for annulment.
a relative died and has left money to myself
Posted - 05 April 2008 : 18:02:21
