Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By Just Me
#313773 Could someone please help

What is the timescale if the OR was going start to challenge what they said they would investigate as gratuitous alienation?(which it wasnt) can this be done after automatic discharge?

There has been nothing registered against the property in question, and no further contact from the OR since first interview and 6 month follow up to confirm income still same. Automatic Discharge granted as normal after 1 year

No letters to say they have claimed an interest in the property
There was no payments made into bankruptcy and no BRO/BRU

thanks in advance for any advice

Just Me
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By TalbotWoods
#313793 Hi JM

OK this is a difficult one, as there are aspects that we just don't know about, as these are personal circumstances, on your behalf and interpretation by the OR, so we cannot give a definitive answer.

The OR has a normal maximum of 3 years to deal with property and property issues, if they need to go beyond that window they need to convince a court.

However, there are three rules of thumb and an sting in the tail here:

1. The OR will have to take into account the return that pursuing this would yield, it would have to be high enough to make it worthwhile to the estate.
2. The OR will properly exclude you from this and go purely for the benefactor of the GA.
3. Such alienations in the period up to 5 years prior to the date of sequestration are open to a statutory challenge by the permanent trustee, so if it is before then they can only ask, they cant really enforce.

And the sting. With these if they beleive it requires vigorous court action then they will move without warning, the first the Benefactor may know about this is the serving of court papers!!

Now the second however.....

If the OR has discharged the bankruptcy, and concluded their business, it may well be that they are not going to chase this, but with GA's they wont tell you this, as they are somewhat miffed with you!!

This is one you are going to have to sweat on until 3 years from Bankruptcy date, but with each day any action will be less likely.

Sorry we couldn't be more helpful, but as I said as these are personal circumstances, on your behalf and interpretation by the OR, we cannot give a definitive answer.
By wdm2
#314523 They would be unlikely to much about with a gratuitous alienation. They run the risk that the benefactor disposes of the property themselves (assuming we are talking about a house?) and the new purchaser, if they have bought in good faith, would have an unchallengable title.

In the circumstances of what sounds like a less than clearcut case, whilst they could go directly for the benefactor, they would probably want to explore the circumstances further with you (to see if fair value was paid, what you did with the money, clearly establish that you were insolvent at the time and so on).

In addition they haven't gone for a BRO/BRU or delayed your discharge which would both be possible if they were actively looking at a gratuitous alienation.

I'm afraid you can't rest easy but I would be surprised if action is likely.