will the OR take my money ?

[fiona.g]

Hi, im bankrupt at present (under UK Law - just to clarify) and due to be discharged in April 2008. My father died last week and it turns out he hasnt left a will so the inheritance will goto me and my two brothers. The solicitor has said it will be at least 6 months before we see any money which would mean Ill be discharged by the time I get my share.
Ive been told on another forum that although ill get my money after im released from bankruptcy that the OR will still take my money because he goes by the date of my fathers death not the date of me actually receiving the money, and as I was bankrupt when my father died he has the right to claim the money - is this correct?
If it is correct is there any legal way I can get round having to hand the money over? Im on benefits, the money would be such a big help to me I find it unfair it could be taken even when im not bankrupt anymore!

[couple31]

I'm afraid I don't know the answer (someone will be able to help soon) but welcome to the forum and I'm very sorry about your father

[Skippy]

Hi Fiona and welcome to the forum. First of all can I say how sorry I am about your father.

Unfortunately the OR is entitled to claim an inheritance where the person has died during the period of BR, even if the inheritance is received after discharge. I'm not sure what will happen if you inherit more than your debts - Melanie, can you help?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Hi Fiona - may I add to the condolences on your sad loss.

Skippy is quite correct, unfortunately, in that your share of the inheritance vests in a Trustee from the date you become entitled to receive it rather than the date you receive the money. If you inherit more than your debts, the costs of the bankruptcy and statutory interest, you will be entitled to receive the balance.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[fiona.g]

Thank you for explaining this for me. I read somewhere that you can avoid having to hand the inheritance over to the OR by putting your money into Trust, is this correct and if so could someone please explain what this involves and what a Trust is? Ive no idea!
Many thanks

[MelanieGiles]

Hi Fiona

The trust would have need to have been set up before your father's death at his request I am afraid. Is there any reason why you feel this money should not be paid to your creditors?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp