Bankruptcy

[lloyd1e]

If someone has gone bankrupt is any money inherited - say, for example, twenty-five years on - free from any claim?

[Ethel]

Only assets inherited during the period of bankruptcy can be 'at risk'.

Once you are discharged, you keep all assets aquired after bankruptcy.

[lloyd1e]

Many thanks for your help. However, could it not be claimed that an inheritance was something you already had - in principle - because you were always going to receive it?

[bednobs]

who is to say you were always going to recieve it though? an inheitance isnt garunteed, because it's based on the person who has died wishs, which could change over time surely?

[lloyd1e]

Many thanks - I appreciate your comments.

[themas]

If the person you inherit from has died before you go bankrupt, or dies while you are bankrupt, then the inheritance will be taken, even if it is not received until years after discharge (e.g. due to delay in winding up the estate). Also, if the death occurs when you are still paying creditors through an IPA or IPO after discharge you are under a duty to notify any change in your financial circumstances (and the inheritance would be one), and it is very likely it would then be taken. However, IPA/IPO only last 3 years (other than in exceptional circumstances.

[lloyd1e]

Many thanks