Discussions on life after your bankruptcy discharge.

Moderators: TalbotWoods, JaneClack

By Jane1962
#322013 Hi All,

Quick question...
My husband & I went BR in March 2011 and should finish paying our IPO in May 2014, my husband is 60 in February and once we have completed the IPO he would like to retire (we both work in local government and he could retire early on the 85yr rule).
My question is about the lump sum you receive... Can it be taken to pay to the creditors once the BR is finished?
I'm thinking not but would just like clarification from someone.

Thanks and keep up the good work.

Jane
User avatar
By TalbotWoods
#322053 Hi Jane

Hope you are both keeping well.

Once the IPO is finished, then it is safe, PRIOR to finishing the IPO, the lump sum could be taken into account by the trustee, as it can be deemed to be in lieu of pay.

So the advice here is to wait until the IPO is complete, even if he retires the day after, it will be safe.

Tim