After a bankruptcy declaration, what may the bankruptcy receiver do when the debtor renounces an inheritance, and what must the receiver put before the court?
General information · Not legal advice
Material to check
In the practice exercise file we read the bankruptcy declaration under the Debtor Rehabilitation and Bankruptcy Act and the paper showing when the succession opened. The renunciation fixes when it was made, and any report the receiver filed with the court is made within the period the provision sets, running from the date the receiver learned of the renunciation.
These are types of material to look for, not evidence already verified by PRO SE.
Where readings differ
Where a succession opened before the bankruptcy declaration, a renunciation of inheritance made by the debtor after the declaration does not simply put the estate out of the inheritance: as against the bankruptcy estate it takes the effect of a qualified acceptance, so the estate receives the inherited position with liability limited.
The receiver's power is written as an exception, beginning 'notwithstanding' that default: the receiver 'may recognise the effect of the renunciation', and the estate then stands outside the inheritance altogether. Having recognised it, the receiver must report to the court within the period the provision sets from the date of learning, and the provision leaves open what follows from a late or missing report.
Your judgment
Once the receiver has learned of the renunciation, what in the file shows the date of that knowledge and why the receiver chose to recognise the renunciation rather than take the qualified acceptance?
PRO SE does not make this decision or keep a case record on this public site.When to reconsider
We look at this again if the provision is amended to change the default effect on the estate or the period for the receiver's report, or if a court decision explains what a late or absent report means for the estate.