Question:
I have a friend whom has just gone bankrupt but it due a housing benefit back date as they paid the rent out of some saving they had but they are worried the probate will take this money of them can you help me please and thank you for taking the time to read and reply.
Answer:
I can understand theirs and your concerns as in bankruptcy if you receive a windfall, or large sum of money, the Official Receiver may take it for the bankruptcy.
One issue maybe how much money or benefit are they to receive? This can have a bearing on if the OR looks at this or not.
Secondly, it is a benefit and as such in most instances cannot be used to
pay into a bankruptcy.
Lastly, it could depend also on how much savings they had and used and can document to the OR to show they needed the benefit backdate.
Thank you for letting me help you.
Jon
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