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| T O P I C R E V I E W |
| indy2005 |
Posted - 22 May 2008 : 19:37:45
Thought that might prick your interest!
Again, pieces of great news in your past become nightmares in bankruptcy. Last August I won 10K on the works lottery (top prize). Being on a Debt Management Plan this was very welcome.
Did I pay my creditors off to reduce my debt from 55K to 45K...no. I gave it my wife (I am an ex-gambler and do not want access to money), who spennt it wisely on xmas, a holiday, a new electric meter for the house, a new sofa for the conservatory etc.
In My SOA I didnt say I had disposed of any assets in the last 12 months (after all I didnt sell anything to get it), we just spent it. But the OR is going to see 10K into an account from work, and then 10K out to my wife.
Am I in trouble!
Regards
i |
| 8 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 28 May 2008 : 12:23:27
Indeed!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| indy2005 |
Posted - 28 May 2008 : 12:11:03
I asked a solicitor about this and they said to me that as the declaration of trust we drew up, said I withdrew 65K when I was entitled to 57K then this 10k to my wife was mopped up by this.
I am not happy with this as it seems to say "I owed my wofe money and so paid her instead of my other creditors".
The truth is I gave it to my wife as I was an ex-gambler and this was the sensible thing to do. My wife spent it on living and some jobs around the house which we previously didnt have a hope of doing (new electric meter for example, and a broken shower replacement to name 2).
Then again...! To say I gave it to my wife to spruce up the house in the main, seems to undermine any claim I have to not having an interest in the house!!
Only BR can make you wish you hadnt won a lottery.
Regards
i
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| indy2005 |
Posted - 22 May 2008 : 22:45:41
Hi,
She knew I was gambling. We wanted to draw a line under it and move on so she let me take my interest out of the house.
Unfortunately I underestimated my problem and carried on.
She didnt benefit at all from any of this, no holidays, no fast cars, just 150K to CMC Markets over course of a year.
My only concern is that by me clearing my debts, there may be assumed to be a benefit to the household.
Anyway...lottery money got spent, not stashed under a mattress and I am sure we could prove it from my wifes statements over August to December.
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| melanie_giles |
Posted - 22 May 2008 : 22:01:04
In my opinion there are grounds for a BRU or BRO as you do not have to buy something to acquire an asset, but as I have repeatedly said these restrictions are relatively tame.
The fact that you racked up more debt having paid a chunk off will not effect the exonoration claim, but if your wife benefitted from any of those earlier debts, or was aware that you were gambling, that might do.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| indy2005 |
Posted - 22 May 2008 : 20:59:06
Thanks Julian,
Probably going to bet a BRO anyway, 90% of debt through spreadbetting.
May be interested in your services if it comes to a negotiation on the beneficial interest on the house. Spoke to you the other day about the old E of E law.
What you said about consolidation there sparked a question about equity of exoneration. In my instance I drew out 65K of equity and then paid off my creditors....but then ran up debts with the same creditors. This is a bit like getting a consolidation loan...and then not consolidating. Will this undermine any claim I may make under equity of exoneration.
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| JulianDonnelly |
Posted - 22 May 2008 : 20:36:03
Hi Indy,
You have not used the money to treat a creditor preferentially, but it could be seen as bad conduct because you didn't use the funds to improve you debt position, however I have seen a fair few cases where bankrupts had re-mortgaged to consolidate and never got around to actually consolidating the debt, but spent the money instead I fail to see how this is any different so you could be ok.
Worst case scenario you could be looking at a Bankruptcy Restriction Order.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| indy2005 |
Posted - 22 May 2008 : 20:12:02
Thanks.
I didnt want to show preference to a creditor, so rather than distributing it pro-rata, I thought I would spend it.
!!
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| m and v |
Posted - 22 May 2008 : 20:00:18
LOL!
Now I do need an expert to answer this for you!
This must be the only time when I hope I don't win the lottery or get left a wad of money in some distant relatives will!
Seriously though - if you spent it on things for the house and to live on then I can't see how the OR can do much.
If you had used it to pay off a debt then that might have been seen as giving preferential treatment to one of your creditors! So that could have been worse!
An expert will need to give you advice here Indy
Vicki x |
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