Bankrupt inheritance
Discussion
A guy I know went bankrupt nearly 3 years ago.
The day after he was made bankrupt his father died. He no longer had anything to do with his father as his father had contributed to him going bankrupt - long story!
He gave no thoughts towards his fathers death as they'd parted ways and there was no going back. Turns out his father had left his estate to his own brother who also died shortly after which meant the estate defaulted back to the guy I know.
Long story short he's received a sizable cheque in the post. As he understands it, he has to let the OR know that he's come into this money due to the timing of his father's death.
Is this correct and what would happen if he didn't tell them? How would they know?
The day after he was made bankrupt his father died. He no longer had anything to do with his father as his father had contributed to him going bankrupt - long story!
He gave no thoughts towards his fathers death as they'd parted ways and there was no going back. Turns out his father had left his estate to his own brother who also died shortly after which meant the estate defaulted back to the guy I know.
Long story short he's received a sizable cheque in the post. As he understands it, he has to let the OR know that he's come into this money due to the timing of his father's death.
Is this correct and what would happen if he didn't tell them? How would they know?
woodyTVR said:
A guy I know went bankrupt nearly 3 years ago.
The day after he was made bankrupt his father died. He no longer had anything to do with his father as his father had contributed to him going bankrupt - long story!
He gave no thoughts towards his fathers death as they'd parted ways and there was no going back. Turns out his father had left his estate to his own brother who also died shortly after which meant the estate defaulted back to the guy I know.
Long story short he's received a sizable cheque in the post. As he understands it, he has to let the OR know that he's come into this money due to the timing of his father's death.
Is this correct and what would happen if he didn't tell them? How would they know?
https://debtcamel.co.uk/inherit-money-bankrupt/The day after he was made bankrupt his father died. He no longer had anything to do with his father as his father had contributed to him going bankrupt - long story!
He gave no thoughts towards his fathers death as they'd parted ways and there was no going back. Turns out his father had left his estate to his own brother who also died shortly after which meant the estate defaulted back to the guy I know.
Long story short he's received a sizable cheque in the post. As he understands it, he has to let the OR know that he's come into this money due to the timing of his father's death.
Is this correct and what would happen if he didn't tell them? How would they know?
Can you clarify if the bankruptcy was discharged and whether this was before or after the brother's death?
These are the outcomes as I understand it -
1) if the bankruptcy is still undischarged the guy must notify the OR
2) if the bankruptcy is discharged and the brother died after - case closed and the guy keeps the money, the OR has no interest
3) if the bankruptcy is discharged and the brother died before - the inheritance should have been included in the bankruptcy as an asset. If he knew it was coming to him but kept quiet, he's been naughty. If he genuinely had no idea until now then who knows what he should do - my guess would be to notify the OR or at least ring the insolvency service for advice (from a withheld number
)
These are the outcomes as I understand it -
1) if the bankruptcy is still undischarged the guy must notify the OR
2) if the bankruptcy is discharged and the brother died after - case closed and the guy keeps the money, the OR has no interest
3) if the bankruptcy is discharged and the brother died before - the inheritance should have been included in the bankruptcy as an asset. If he knew it was coming to him but kept quiet, he's been naughty. If he genuinely had no idea until now then who knows what he should do - my guess would be to notify the OR or at least ring the insolvency service for advice (from a withheld number
)Edited by theboss on Monday 19th February 18:09
He would definitely have to declare it.
The OR has to ability to investigate after the bankruptcy is made, if you were caught you could face a fine and/or up to 7 years in prison. And the bankruptcy order can be extended.
This seems fairly common sense to me otherwise people would get out big ass loans, say they spent it on booze and hookers and declare bankruptcy, once the order was in place they'd take the money from wherever they hid it and keep it.
The OR has to ability to investigate after the bankruptcy is made, if you were caught you could face a fine and/or up to 7 years in prison. And the bankruptcy order can be extended.
This seems fairly common sense to me otherwise people would get out big ass loans, say they spent it on booze and hookers and declare bankruptcy, once the order was in place they'd take the money from wherever they hid it and keep it.
Valgar said:
He would definitely have to declare it.
The OR has to ability to investigate after the bankruptcy is made, if you were caught you could face a fine and/or up to 7 years in prison. And the bankruptcy order can be extended.
This seems fairly common sense to me otherwise people would get out big ass loans, say they spent it on booze and hookers and declare bankruptcy, once the order was in place they'd take the money from wherever they hid it and keep it.
Isn't that what "celebrity" bankrupts do?The OR has to ability to investigate after the bankruptcy is made, if you were caught you could face a fine and/or up to 7 years in prison. And the bankruptcy order can be extended.
This seems fairly common sense to me otherwise people would get out big ass loans, say they spent it on booze and hookers and declare bankruptcy, once the order was in place they'd take the money from wherever they hid it and keep it.
Valgar said:
He would definitely have to declare it.
The OR has to ability to investigate after the bankruptcy is made, if you were caught you could face a fine and/or up to 7 years in prison. And the bankruptcy order can be extended.
This seems fairly common sense to me otherwise people would get out big ass loans, say they spent it on booze and hookers and declare bankruptcy, once the order was in place they'd take the money from wherever they hid it and keep it.
It all depends on timing. What you’ve described would clearly be fraudulent. However somebody being made bankrupt, being completely above board in their disclosures and then inheriting a fortune or winning the lottery the day after discharge, wouldn’t be obliged to repay any of the debts.The OR has to ability to investigate after the bankruptcy is made, if you were caught you could face a fine and/or up to 7 years in prison. And the bankruptcy order can be extended.
This seems fairly common sense to me otherwise people would get out big ass loans, say they spent it on booze and hookers and declare bankruptcy, once the order was in place they'd take the money from wherever they hid it and keep it.
theboss said:
Can you clarify if the bankruptcy was discharged and whether this was before or after the brother's death?
These are the outcomes as I understand it -
1) if the bankruptcy is still undischarged the guy must notify the OR
2) if the bankruptcy is discharged and the brother died after - case closed and the guy keeps the money, the OR has no interest
3) if the bankruptcy is discharged and the brother died before - the inheritance should have been included in the bankruptcy as an asset. If he knew it was coming to him but kept quiet, he's been naughty. If he genuinely had no idea until now then who knows what he should do - my guess would be to notify the OR or at least ring the insolvency service for advice (from a withheld number)
Fingers crossed for him it's 2 then. I think it's most likely 3 though.These are the outcomes as I understand it -
1) if the bankruptcy is still undischarged the guy must notify the OR
2) if the bankruptcy is discharged and the brother died after - case closed and the guy keeps the money, the OR has no interest
3) if the bankruptcy is discharged and the brother died before - the inheritance should have been included in the bankruptcy as an asset. If he knew it was coming to him but kept quiet, he's been naughty. If he genuinely had no idea until now then who knows what he should do - my guess would be to notify the OR or at least ring the insolvency service for advice (from a withheld number
)Edited by theboss on Monday 19th February 18:09
Thanks everyone for your input.
woodyTVR said:
theboss said:
Can you clarify if the bankruptcy was discharged and whether this was before or after the brother's death?
These are the outcomes as I understand it -
1) if the bankruptcy is still undischarged the guy must notify the OR
2) if the bankruptcy is discharged and the brother died after - case closed and the guy keeps the money, the OR has no interest
3) if the bankruptcy is discharged and the brother died before - the inheritance should have been included in the bankruptcy as an asset. If he knew it was coming to him but kept quiet, he's been naughty. If he genuinely had no idea until now then who knows what he should do - my guess would be to notify the OR or at least ring the insolvency service for advice (from a withheld number)
Fingers crossed for him it's 2 then. I think it's most likely 3 though.These are the outcomes as I understand it -
1) if the bankruptcy is still undischarged the guy must notify the OR
2) if the bankruptcy is discharged and the brother died after - case closed and the guy keeps the money, the OR has no interest
3) if the bankruptcy is discharged and the brother died before - the inheritance should have been included in the bankruptcy as an asset. If he knew it was coming to him but kept quiet, he's been naughty. If he genuinely had no idea until now then who knows what he should do - my guess would be to notify the OR or at least ring the insolvency service for advice (from a withheld number
)Edited by theboss on Monday 19th February 18:09
Thanks everyone for your input.
megaphone said:
Fingers crossed he will have to pay back the money he owes to all the people he fleeced when he went bankrupt.
I would be hoping this too.I would be pissed if someone declared bankrupt on a debt owed to me, then I saw them a little while later swanning around with an inheritance/windfall.
Du1point8 said:
megaphone said:
Fingers crossed he will have to pay back the money he owes to all the people he fleeced when he went bankrupt.
I would be hoping this too.I would be pissed if someone declared bankrupt on a debt owed to me, then I saw them a little while later swanning around with an inheritance/windfall.
Bankruptcy doesn’t mean you have nothing, it means all your assets are frozen at that time; I.e. a lot of people get taken into ‘bankruptcy’ and use the equity in their home to repay the debt(s), after, of course paying the solicitor / OR who make a fortune; plus you have certain company’s who will essentially bridge loan you the funds against the house to repay the debt if certain proposals are denied.
You can be taken into bankruptcy for £1000 or £1,000,000 ...
Or are made bankrupt due to their spendings and not being able to pay it back.
If the person mentioned in the OP is one of those that gets up to the eyeballs in debt, then bankrupts themselves to walk away with clean hands or gets an IVA so they dont have to pay the everyone back, then I dont see the issue.
If you cant afford to pay then its time to shut up shop and re-evaluate everything and sort it out... then to find out they have a windfall (not matter the source) and not repay back everything in full is s
tty.
That kind of thing should be able to backdate several years if any windfall or change in circumstance happens that means an old debt can be paid in full.
If the person mentioned in the OP is one of those that gets up to the eyeballs in debt, then bankrupts themselves to walk away with clean hands or gets an IVA so they dont have to pay the everyone back, then I dont see the issue.
If you cant afford to pay then its time to shut up shop and re-evaluate everything and sort it out... then to find out they have a windfall (not matter the source) and not repay back everything in full is s
tty.That kind of thing should be able to backdate several years if any windfall or change in circumstance happens that means an old debt can be paid in full.
Lord.Vader said:
Du1point8 said:
megaphone said:
Fingers crossed he will have to pay back the money he owes to all the people he fleeced when he went bankrupt.
I would be hoping this too.I would be pissed if someone declared bankrupt on a debt owed to me, then I saw them a little while later swanning around with an inheritance/windfall.
Bankruptcy doesn’t mean you have nothing, it means all your assets are frozen at that time; I.e. a lot of people get taken into ‘bankruptcy’ and use the equity in their home to repay the debt(s), after, of course paying the solicitor / OR who make a fortune; plus you have certain company’s who will essentially bridge loan you the funds against the house to repay the debt if certain proposals are denied.
You can be taken into bankruptcy for £1000 or £1,000,000 ...
Lord.Vader said:
Du1point8 said:
megaphone said:
Fingers crossed he will have to pay back the money he owes to all the people he fleeced when he went bankrupt.
I would be hoping this too.I would be pissed if someone declared bankrupt on a debt owed to me, then I saw them a little while later swanning around with an inheritance/windfall.
Bankruptcy doesn’t mean you have nothing, it means all your assets are frozen at that time; I.e. a lot of people get taken into ‘bankruptcy’ and use the equity in their home to repay the debt(s), after, of course paying the solicitor / OR who make a fortune; plus you have certain company’s who will essentially bridge loan you the funds against the house to repay the debt if certain proposals are denied.
You can be taken into bankruptcy for £1000 or £1,000,000 ...
megaphone said:
I have no sympathy for anyone who is made personally bankrupt, they are just arses.
I do have a bit of sympathy for companies who fall fowl of bigger companies that go down. Sub contractors of Carillion for example.
This... lets not turn into America, where wealth is the barometer of morality.I do have a bit of sympathy for companies who fall fowl of bigger companies that go down. Sub contractors of Carillion for example.
People can go bankrupt for many reasons.Sometimes through their own mis-management; sometimes because of external forces beyond their control.
megaphone said:
I have no sympathy for anyone who is made personally bankrupt, they are just arses.
I do have a bit of sympathy for companies who fall fowl of bigger companies that go down. Sub contractors of Carillion for example.
What if you were made personally bankrupt because you put all your personal money into keeping your business afloat and staff employed? are they arses? I do have a bit of sympathy for companies who fall fowl of bigger companies that go down. Sub contractors of Carillion for example.
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