Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By rik1234
#208907 Ok so it seems that my parents whilst not strictly divorced but separated have gone into arrears and all the assets are being seized which include the house and her accounts, the cause of the arrears being that my father has not paid the mortgage and has put a down payment on a flat with his girlfriend, whilst my mother had just received a substantial amount of money from my grandmother's will. How would we be able to access the money so that i can pay my student fee's and she can put a down-payment on a flat?
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By TalbotWoods
#208920 Hi rik1234

As you have posted this in the During Bankruptcy Section, we need to know who it is that has entered into insolvency before we can answer this, as it does have a huge bearing on the answer.

Tim
By rik1234
#208993 Well the bank had sent various messages but they were never replied to so what i have heard is that they declared both of them bankrupt, and seized the house. As both of their names were on the mortgage and on the account it was taken out of.
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By TalbotWoods
#209000 If your mother is still bankrupt, the inheritance will, unfortunatley, vest into the bankrutpy estate, to assit in clearing all her debts.

If there is sufficent left after all debts have been paid, and all fees paid (which are considerable) then the bankrupcy can be annuled and the remainder of the inhertiance can then be paid to her.

If she has been discharged from bankruptcy, then the inheritance will be her in its entirity, UNLESS the death occured during the bankruptcy phase, when it will again vest into the bankruptcy estate.

I would suggest finding out if they have actually been declared bankrupt, as it is highly unusual for a bank to do this.

If they have NOT been declared bankrupt then it is a complelty differnt ball game.

Tim
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By TalbotWoods
#209132 This would be done through the Official Receiver.

As I have said if there is sufficient money from the inheritance to cover ALL her debts and cover ALL the fees, then an annulment is very possible. If there is insufficient (even by a few pounds) then it wont happen.

The official receiver is the only person that can deal with this, and it is not a case of her asking to be discharged. If there are sufficient grounds legally for her bankruptcy to be set aside, then that can happen, but normally this will only happen if the law has not been followed and those are very rare.

I can see from your original post why you would like the bankruptcy to end, but, unless there are legal grounds, then until the OR has finished and any assets dealt with, she will not have access to the money.

If you try and hide the inheritance, then you will be committing a criminal offence, which can in certain circumstances carry a custodial sentence, but as a minimum would almost definitely result in the discharge being suspended, and a very hefty BRO going into place.

Additionally the OR can go for whoever has the money with the full power of the court, and can force other into bankruptcy (which can happen).

I know you would like to access the inheritance, but at present it will belong to the OR as an asset in your mothers bankruptcy.

TIm