Discharged Bankrupt

[balligbridge]

If a bankrupt has been discharged but has had assets stripped including house to pay off the debt - if they inherit in the future can the administrators come after that as well?

[themas]

I find it difficult to believe that a house was stripped of possessions as part of a bankruptcy. It would be highly unusual for anything to be taken other than goods of significant value - such as expensive good quality furniture, jewellery etc.

If the bankruptcy was a normal one & took place under the new rules that came in in 2004, then discharge will have been 12 months after becoming bankrupt. If the bankrupt was not making any payments under the bankruptcy, then the obligation to notify the Official Receiver of changes in finances (such as getting an inheritance) ends on discharge & the inheritance cannot be taken.

However, if the person they inherited from died during the bankruptcy (even if the inheritance is not paid out until after discharge) the OR will want to have the money (or sufficient of it to pay all the costs and debts).

Also, if the bankrupt has been making payments to creditors under the bankruptcy, the obligation to do so continues for 3 years - in other words it goes on after discharge. In this case, it may be that the OR would want the inheritance if death occurred during the 3 years. However, I believe this is a rather gray area in the law & it may be possible to challenge any OR decision on it.

There may be some unusual cases where conditions are applied which continue after discharge, & where the above may not be applicable.