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If you are already bankrupt but you are struggling get advice and help here
By doneit
#32822
I have looked and looked and looked all over for an answer to this.

If you are bankrupt (I am, and used alot of advice from this website which helped) but I was about to put the lottery on and I wondered.... What if I win the jackpot..... do I lose it?

Or does the OR pay your debts off then give you the remaining money.

Thanks :)

Doneit.
By Melissa S
#32824
Hi there doneit
Welcome to the forum.

Firstly, I appreciate your optimism on winning the lottery! The answer to this really depends on where you are in your bankruptcy. If you have not yet been discharged and you win the lottery this money is a windfall and can all be taken to pay your debts. Only if the win is enough to cover your entire original debt and costs would you be given any thing that is left over.

If the win is not enough to cove your original total debt the money will still be taken to pay your creditors.

If you have been discharged and are not in a income payment agreement (IPA) then the money should be your to keep, if you have been discharged but are in a IPA then the creditors are still entitled to any windfall until the 3 years is up.

Hope this answers your question, please feel free to ask if there is anything else we can help with
User avatar
By James Falla
#32827
Hi there doneit

I am really glad to hear that you have found this forum so useful when going bankrupt. That is exactly what we are here for :)

As Melissa has said if you get a lottery win while you are bankrupt (I am talking a big win win not just £10 or £50 which the OR will not be interested in :)) then this is a windfall and must be reported to the OR. The OR will take the money and put it towards your debts.

If the sum is sufficient to pay all of the original debts in full + the ORs fees (which can be substantial) + statutory interest on the debt at 8% per year from the date of your bankruptcy then you will be discharged and any income payment agreement you have will be stopped. If the sum is not enough to pay all this then you remain bankrupt and you have to keep paying any income payment agreement you have in place.

Note: The point that Melissa made about getting a win after you are discharged but still have an IPA is not quite right. In fact AFTER you have been discharged even if you have an ongoing IPA a lottery win or any other windfall such as inheritance is no longer treated as an asset of your bankruptcy and is yours to keep (PPI claims are the exception to the rule). Windfalls do not have to be paid into an IPA.
By doneit
#32830
Hi Melissa :)

Thanks for the reply :) good advice, please note James’s comment as he corrected you on one point.......

Thanks to James too,

Yea the site answered most things using pretty normal speak :) which was a help especially the High Court Enforcement officer advice... the sheriffs office folk are pretty arrogant and do not follow the law... sort of take things now and worry about it later attitude.

The courts own bailiffs (who will remain anonymous) ironically told me how to hide my car and how to be 'out' when the sherrif office bailiffs ..sorry 'Enforcement' as they 'prefer' to be refered to :| arrive until I can go bankrupt lol. They then got my bankruptcy through quick and even typed out my letter as I waited.... great service even from the Judge. The hardest part was saving the 525.00 up.... and then 180.00 court fee, they even allowed a tax credit letter that was not the 'total official' award letter to waiver the 180.00 fee saying all they have to do is ask me to provide the 'proper' award letter if anything comes up but my 'amended' WTC award letter pretty much is the same but can sometimes be not allowed, but they did great things for me at the court.

I feel a bit spongy inside still as always worked but 18K just got too much especially being self employed and owed money at times! I still work and my income is enough to live off with little for my debts. Plan is to take it easy for the year so not to complicate things. Then when discharged take step no1 all over again :)

Feels a bit awkward towards you though......as I got a lot from your site but you get nothing in return! :) but it is good to have people like you out there offering advise and solutions :) some firms seemed just to have payments upon payments and I read a few nightmare stories too, poor folk at a real bad time in their lives and even then some vultures out there.... taking advantage, I avoided them annoying when you chat and then it turns into a sales pitch.... beatmydebt just answers it all in your various sections!

Waiting for the OR call but feel a bit less stressed and seeing the positive of the bad situation. Following your advice of 'Life after bankruptcy' so I have another shot at life in a year’s time :)

So a BIG THANK YOU to you :) keep up this great work you do :)

And I hope you win the lottery... you deserve it!

Gary :) xx

ps edited for typos lol
User avatar
By Hayden
#32832
Hi Gary

Well done with your Bankruptcy. I am sure the next year will go by very fast. Good luck with the OR and come back to us if you have more questions after that.

Great news that you have found this site so useful. As James has said helping people and making sure they get the right advice is what we are here for :) As our motto goes "Helping you make tomorrow better". If you want to do anything for us then share the site with others if you ever get the chance. The more people who know about us the more people we can help :)
By doneit
#32841
Hayden wrote:Hi Gary

Well done with your Bankruptcy. I am sure the next year will go by very fast. Good luck with the OR and come back to us if you have more questions after that.

Great news that you have found this site so useful. As James has said helping people and making sure they get the right advice is what we are here for :) As our motto goes "Helping you make tomorrow better". If you want to do anything for us then share the site with others if you ever get the chance. The more people who know about us the more people we can help :)
Hi Hayden

Sorry for missing this reply .. I got a lot going on! ;)

Thanks for the kind words, I will deffo share, I already have to friends who are not as far down the line as I am ... as the other topics on your site answer all kinds of questions which could help many people avoid getting this far down the line where bankruptcy is the only option.

The weird things is I have just been paid and I have never had so much money in my wallet at once!? lol its all declared though so not a dodge to the OR, its for living etc but all the same it is a different feel all together :)

I am still waiting to hear from the OR, bit worried but from what I read here and other sites its seldom a bad experience.

Thanks you again :)

Gary xx
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By Geraldine
#32846
Hi there Gary

Well done so far :) I can confirm that if you have been honest on your application forms and have nothing to hide (which I am sure you haven't) then the interview with the OR really is nothing ton worry about. They are normally nice people (mine certainly was). They are just there to do there job and make sure they have all the information they need about your situation.

By the way how long is it since you went to the court and declared yourself bankrupt? If you have not heard from the OR within a week after that I would give them a call and find out what is going on. It does not hurt and will just confirm to them that you are willing to help in any way you can. :)
By doneit
#32849
Geraldine wrote:Hi there Gary

Well done so far :) I can confirm that if you have been honest on your application forms and have nothing to hide (which I am sure you haven't) then the interview with the OR really is nothing ton worry about. They are normally nice people (mine certainly was). They are just there to do there job and make sure they have all the information they need about your situation.

By the way how long is it since you went to the court and declared yourself bankrupt? If you have not heard from the OR within a week after that I would give them a call and find out what is going on. It does not hurt and will just confirm to them that you are willing to help in any way you can. :)
Hi

I was declared bankrupt on 13th jan 15...... so only been a week and a bit. I will call them bay the end of next week if they havent called me by then. I was told by the courts between 5 - 10 working days :)

Thanks for the reply :)

Gary.
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By Geraldine
#32856
That's interesting Gary. As far as I was aware the OR normally contacts someone who has gone Bankrupt within a day or so. With me it was actually the same day.... However I have heard that as a result of a cost cutting exercise in the Insolvency Service some OR's offices have recently been consolidated and this is causing some delays basically due to lack of resource.

Ultimately I would not worry too much. But I agree if you have not heard by the end of this week a quick phone call will not hurt.
By Melissa S
#32869
Hi Gary

I was just wondering if you had heard from your OR yet and if so how it went?

if you have still yet to hear I would give them a call. How are you getting on with your bankruptcy, do you have any other concerns? please let us know and we may be able to help.

Melissa :)