Should I go bankrupt?

[jon1965]

Re: Should I go bankrupt?

Hi all and thanks for your help so far.
I am about to investigate the UE route but a question on BR would be about the recent sale of my house.
The house was bought in 1990 just prior to my marraige but in my name only. It was however bought to be our marital home. After I left my wife continued to live there with DWP paying some of the mortgage and I paid the rest. It was always agreed that it was our house with equal interest.
During the sale my mum paid for some work, skip hire, man with van etc which was repaid out of the sale proceeds and I gave my wife (still married although apart for 10 years) 7.5K . If i do go BR could the OR chase either her or my mum for the money?
I am still on a fact finding exercise atm prior to decisions
Ta
Jon

[SXGuy]

Re: Should I go bankrupt?

Dont think so, if they ask, your mother was a creditor because she paid for the workman for you.

You could also say that the money you paid your wife was to repay money she lent you.

Anyone you owed or owe money to is a creditor.

When i went BR, my mother had lent me thousands, she ended up being my biggest creditor, i listed her in my BR.

[IF]

Re: Should I go bankrupt?

Hi all and thanks for your help so far.
I am about to investigate the UE route but a question on BR would be about the recent sale of my house.
The house was bought in 1990 just prior to my marraige but in my name only. It was however bought to be our marital home. After I left my wife continued to live there with DWP paying some of the mortgage and I paid the rest. It was always agreed that it was our house with equal interest.
During the sale my mum paid for some work, skip hire, man with van etc which was repaid out of the sale proceeds and I gave my wife (still married although apart for 10 years) 7.5K . If i do go BR could the OR chase either her or my mum for the money?
I am still on a fact finding exercise atm prior to decisions
Ta
Jon

Jon, when did you sell your house?

[jon1965]

Re: Should I go bankrupt?

Last Dec, sale completed 9.12.2011

[IF]

Re: Should I go bankrupt?

Last Dec, sale completed 9.12.2011

Now it really depends on when you go BR as the OR may see it as favouring one creditor over another especially if you were insolvent at the time of paying your Mum and your Ex. Then the OR would ask for money back. Just so you are aware this could be the case.


IF...x

[SXGuy]

Re: Should I go bankrupt?

IF raises a good point, and i was indeed asked that very question.

"Why did you repay some debts over others"

My reply? it only came to my attention that i was insolvent after the fact, and had all intentions to pay each other creditor.

Now they accepted that answer, but my circumstances were very different to your own, so dont take what i say as your answer.

[philnicandamy]

Re: Should I go bankrupt?

Now it really depends on when you go BR as the OR may see it as favouring one creditor over another especially if you were insolvent at the time of paying your Mum and your Ex. Then the OR would ask for money back. Just so you are aware this could be the case.


IF...x

the OR can ask for monies back but if they dont have the cash then theres not much they can really do..but IF is correct it could look like favoring

[Talay]

Re: Should I go bankrupt?

the OR can ask for monies back but if they dont have the cash then theres not much they can really do..but IF is correct it could look like favoring

Is that a legal position ? Say you owe me £5000 and you pay me back when you have other debts which you do not repay and then you go bankrupt, are you saying that the official receiver can come and ask me to give him back the £5000 you gave me ?

Not my business that you've gone bankrupt is it ?

[SXGuy]

Re: Should I go bankrupt?

The OR is going to want to know why, you favoured one debtor over another, the point is, the OR is trying to establish whether you believed you were insolvent at that time.

They can ask for it back, its unlikely they would get it. The OR really didnt care when he asked the question, it was more a formality.

Whats he gonna do? refuse BR? its already been granted by the judge at that point.

[Talay]

Re: Should I go bankrupt?

Sorry, I was thinking that the OR was going to ask the party repaid for the money back. No-one is going to give back what they were owed in order to stand in line in BR and get next to nothing.

[IF]

Re: Should I go bankrupt?

Is that a legal position ? Say you owe me £5000 and you pay me back when you have other debts which you do not repay and then you go bankrupt, are you saying that the official receiver can come and ask me to give him back the £5000 you gave me ?

Not my business that you've gone bankrupt is it ?

Yes they can ask you for the money back as Phil said they are unlikely to get it but the person going BR may get a BRO/BRU.

What conduct may lead to a BRO/BRU?
When deciding whether to make a BRO/BRU the court and the official receiver may take into account the individual’s conduct before and after the making of the bankruptcy order.
Below are some examples of dishonest or blameworthy conduct that could lead to a BRO/BRU. The list is not exhaustive, so any behaviour that the official receiver considers to be suspect may be the subject of a BRO application and should be investigated.

• Failing to keep or produce records which would explain a loss of money or property.
• Giving away assets or selling them at less than their value.
• Deliberately paying off some creditors in preference to others.
• Failing to supply goods or services which have been paid for (taking deposits).
• Carrying on a business when you knew or ought to have known you could not pay your debts (trading with knowledge of insolvency).
• Incurring debts which you knew you had no reasonable chance of repaying.
• Gambling or making rash speculations or being unreasonably extravagant.
• Causing your debts to increase by neglecting your business affairs.
• Behaving fraudulently, e.g. making a false claim to obtain credit.
• Not co-operating with the official receiver or trustee.

Bankruptcy Restriction Undertakings / Orders.

• Bankruptcy Restrictions Orders/Undertakings (IS)

[jon1965]

Re: Should I go bankrupt?

Hi boys and girls
This bit isn't really about BR but I didn't know where to put it. As I said in my original post , there was the possibility of a serious court case....now it is a reality. If, and I guess it is a big IF, the worst comes to the worst I could have to go a visiting for some time ...is it likely that my creditors will make me BR or just wait till I am back in the real world?
Mind you it might never happen, I am just being glass 3/4 empty (sorry PlanB)

[PlanB]

Re: Should I go bankrupt?

Try and look at the practicalities here first. A quick check of the prison service website www.prisonservice.gov.uk confirms that you would be permitted to receive an unlimited amount of incoming post during your stay. What you want to avoid is court papers etc being served to your 'outside' address which you don't get to see and deal with. Statutory Demands (the formality before bankruptcy) are often hand delivered so they may slip through the net of a Royal Mail redirect service.

What I hope is that someone will tell you whether it's wise to disappear for the duration, or whether you should inform your creditors where you will be for a short time and hope they don't do anything sneaky behind your back

Niddy is setting up an excellant mail 'depot' service where post from creditors can be sent to his centre and then scanned and sent on to you by email so you would continue to know what is going on with your creditors without them knowing exactly where you are. In some circumstances offenders (sorry for that dreadful word) are allowed to access email, but some are not.

Hey, this is all speculation and I hope you've taken quality legal advice on preventing you having to spend time away from this site

[jon1965]

Re: Should I go bankrupt?

Thanks planb. It is so new I am only seeing the solicitor tomorow. To be honest I have no idea where it will lead Just want to say thank you for being so non judgemental.
Ideas pop into my head and I want to find out the answer NOW. You know what I mean

[CleverClogs (RIP)]

Re: Should I go bankrupt?

Ideas pop into my head and I want to find out the answer NOW. You know what I mean

Ideas such as whether PlanB will bake you a cake with a hacksaw inside?