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Discussion and questions about what to expect when your bankruptcy is finished
#26722
My bankruptcy date was 1998, and I am discharged.
Prior to discharge my father died. His property was sold recently and the OR will shortly received £105,000 which is the sum total of my share of the sales proceeds. My debts in the original bankrupty were £21000 and previously the OR had received some funds from my father's executors. What is likely to happen to the funds the OR will be receiving very shortly?????
#26741
Hi there Anna B and welcome to the forum.

As far as I am aware after the OR gets this money they will pay off the outstanding debt in full. Anything left will then be returned to you.
#26884
Hello Anna B

Carla is not quite right I am afraid. If you get a large windfall that the OR is entitled to like this then yes, the total debt at the time you were declared bankrupt will be repaid in full. However over and above this the OR will also pay the creditors statutory interest at 8 percent a year from the date of your bankruptcy. They will also pay their fees and disbursements in full. As such you will end up paying significantly more than the original £21000. However after this any left over funds will be returned to you. Given the funds available are £105,000 you should receive a considerable portion of this.
#26946
Hi again Anna B

Did you speak to the Official Receiver? If not I suggest that you do. They will have to provide you with a full breakdown of how they have used the money they have received already and a final account to let you know exactly what funds have been taken and why and a balance that should be returned to you.
#26952
Hello Anna B

As Steve has said, the OR will be paid your inheritance directly by the executor. They are allowed to take 100% of the debt your owed, interest at 8% per year and their fees. They must provide you a statement of what funds have been taken and who has been paid what. As such if you should definitely speak to the OR and ask for this.
#26979
Hi there Anna B. I would certainly speak to the OR if I were you. Given that you are receiving such a large lump sum the OR should be able to tell you straight away what their total costs and interest will be so that you have an idea of how much money will be return to you. You should also ask for a written account from the OR once your accounts have been settled to check who has been paid what.