Trustee trying to take house - advice needed.

[Lostgirl27]

Hi, I'm looking for some legal advice about a matter. I am going to try and get straight to the point with the details.

Ok, mother and father separate over 10 years ago. Mother moves out of the marital home, father buys her out.

A few years later, father then sells the family home and buys a different house. Mother also buys a flat and runs up other debts on top of this.

Now, mother can no longer afford to pay mortgage and debts (and also just dislikes her flat) so files for bankruptcy then the flat is repossessed. She has a trustee in charge of her bankruptcy who take a payment from her each month.

Father dies a year ago which leaves his house to sell with no mortgage on it.

At this point, mother claims widows private pension from the company that were paying fathers pension, and some other widow payment. She informed trustee and they have considerably upped her monthly payment.

Now, sorry this is so long, trustee are trying to claim the money from the sale of the house (not sold yet but nearly).

Can they do this? It was never the marital home and they have been separated for over 10 years.

I'm in Scotland also, aware of differences in some of the laws.

Thank you to anyone who has read this far

[Fuchzia]

So where they still married even if seperated? Did your Dad leave a will? Sorry. Not much legal knowledge but think that might be important.

[Lostgirl27]

They were not divorced so I guess technically yes they were still separated. And we can't find a will

[lougle]

What time periods are we talking about? It would be helpful to know:

-What form the 'buying out' took (did your Dad officially buy her out, was her name removed from the deeds,etc.)
-When your Mum was sequestered (how long ago)
-When your Dad died in relation to your Mum's sequestration.

[kilmuir]

will she be getting proceeds from sale of his house

[Lostgirl27]

Ok I think he bought her out in 2001 and her name was removed from deeds.

He bought the new property in 2004. Mother was sequestrated in march 2011, father died feb 2012.

And no, my mother was not going to be recieving any proceeds from the sale of the house but according to our solicitor because they were still married I think she could have if she wanted, but she doesn't.

[lougle]

The trouble your Mum has got, is that she was sequestered in March 2011, then your father died in feb 2012, which is less than 1 year after sequestration. That means that any assets she has (prior to discharge) including any inheritance, can be claimed by the Trustee.

She needs proper advice, because she can't just deprive herself of an asset because it would fall to the Trustee. She also can't just give away the asset.

[Lostgirl27]

Thanks for taking the time to reply.

She was literally about a week away from her year being up, it's very unfortunate.

I've been recommended a solicitor who specialises in this sort of thing do I'm going to seek advice from there.

Thanks again.

[lougle]

It is unfortunate. There have been many cases whereby the bankrupt inherits a substantial amount of money, enough to clear all bankruptcy debts and lots left over. The rules don't allow for them to simply pay the debts and walk away. The trustee gets it all (once the debts are settled).

[Collaborate]

I'm sorry lougle but that's nonsense. After the debt is paid off and the trustees costs paid (these can be MASSIVE - it's a real money spinner for them) what's left belongs to the (now former) bankrupt.

[Blistory]

The problem is not the lack of a will. It's the fact that they were still married at the time of your father's death. In Scotland, there are quite clear laws on succession and the Trustee can't ignore them.

Will there be enough to repay all your mother's debts ? If so, you might be better off accepting the position rather than challenging it legally simply due to legal fees. I'm fairly certain that the Trustee could give you an idea of their costs and you can make a decision based on actual figures.

I can see your mum's point of view but I doubt the companies she owes money to would.

[lougle]

Apologies -I had no idea of that. Perhaps it's because all the cases I read about didn't state the value of debts, just that the OR had 'taken the lot'.