How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Max Lowry Your Own Question
Max Lowry
Max Lowry, Advocate
Category: Bankruptcy Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
51031577
Type Your Bankruptcy Law Question Here...
Max Lowry is online now

My husband was made bankrupt in jan 2011, and automatically

Resolved Question:

My husband was made bankrupt in jan 2011, and automatically discharged in 2012.
Since then he has stayed out of debt.
His mother has now offered to give us money as a deposit to put down on a house, however since my husband will not be able to go on the mortgage until 2018 I will need to take out the mortgage on just my name and he could register an interest in the house in the meantime.
What I would like to know is if his mother gifts him the money to put down as deposit for a house, will this affect his bankruptcy in any way? And will the official receiver need to know about this money?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Max Lowry replied 1 year ago.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. In answer to your first question if his mother gifts him the money for a house it will not effect his bankruptcy. He is now discharged and his trustee does not need to be informed about the gift.
I hope this helps.
Max
Customer: replied 1 year ago.
Thanks for that. It confirms what I believe to be correct.
I also would like to know that if he was to inherit a large sum of money before 2018 would that affect his bankruptcy? Or if he was to be named on an joint account with his mother and brother would that too have any affect?
Expert:  Max Lowry replied 1 year ago.
What do you mean when you say inherit? It really depends on the date of death of the person who is giving the inheritance. Has the person died already? Did the person die before bankruptcy or during his bankruptcy or after discharge of bankruptcy?
If he is named on a bank account now this would not effect his bankruptcy.
Customer: replied 1 year ago.
The person is still alive, but would like to sort out her affairs now as she is 82 years old. However she has stated that when she dies she would like to leave her estate to her sons. Being her flat and her savings.
Therefore it has been suggested that the money goes into a joint account between her and her two sons.
If this is the case would my husbands share of the money in the account affect his bankruptcy? And in the event of her death would there be inheritance tax to pay by her sons if their names are ***** ***** account?
Expert:  Max Lowry replied 1 year ago.
Ok. That's makes it clearer. If the date of death is after bankruptcy then it will have no effect on the bankruptcy and the trustee does not need to be informed. It doesn't matter if he has a bank account on his own or named on another bank account.
I'm afraid I can't fully help you with the inheritance tax point. However I understand that if she gifts money to her sons then that will fall out of her estate for inheritance tax purposes if she is still alive seven years after the gift is made. He should really take advice from an expert in this field.
Max
Max Lowry and other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions