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| graham_n |
Posted - 14 May 2008 : 15:40:18
Hi,I'm really concerned because I know I have to apply either for an IVA or Bankruptcy very soon because I have £41,000 in debts to my bank & 4 other credit cards. I've recently had to withdraw a lot of cash from these cards for various unexpected reasons & I'm really worried that this may look like I've deliberately emptied my accounts knowing I'll soon be insolvent. This really isn't the case but I can see how it might look and I was hoping you could tell me if this could affect the outcome of my application.
Also, if an IVA application was turned down & I therefore applied for bankruptcy, would I need to pay the IVA company for their time working on my behalf as well as the bankruptcy court costs? Hope you can help....Thanks.
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| 9 L A T E S T R E P L I E S (Newest First) |
| Helpful Advice |
Posted - 15 May 2008 : 12:11:17
Hi Graham and Viki,
They will not stop you eating or covering your day to day living costs so this certainly will not be an issue.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| graham_n |
Posted - 15 May 2008 : 12:08:41
Thanks a lot for that Viki, it seems only fair to still have a bit of money to live on surely? |
| vikivk |
Posted - 15 May 2008 : 10:55:01
Hi,
I'd just like to add that when I went BR I had just got paid and even though I was in a lot of debt with my bank I tried to withdrawl as much as poss so I had some sort of money for living. I think it only worked out about £500 but it put me even more in debt with the bank. I knew they would freeze my account as soon as I went BR so it had to be done, otherwise it was another 3 weeks with no money whatsoever and I needed a bit for fuel to get to work and food. no one ever brought this up with me though. I guess I was lucky??
Viki |
| Helpful Advice |
Posted - 15 May 2008 : 10:00:03
No Problem Graham and good luck.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| graham_n |
Posted - 15 May 2008 : 08:52:49
Thanks very much everybody for your advice. I've yet to make these payments so I know I'll have to reconsider my plans.....and grovel to the family!
Many thanks again |
| Helpful Advice |
Posted - 14 May 2008 : 19:56:48
Hi Graham,
Yes drawing funds from a credit card to pay family debts is preferential treatment and the Trustee will without a doubt claim these payments back from your family.
If this is the case then maybe an IVA would offer a contribution to your creditors and an element of protection over the family members you have paid off.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| Skippy |
Posted - 14 May 2008 : 18:15:00
Paying of debts to family and friends is a no no in the eyes of the Official Receiver - you are favouring them over your other creditors. The OR can claim the money back, and it can also lead to a restriction order.
Sorry if this sounds harsh, and I can completely understand why you are doing this.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
| graham_n |
Posted - 14 May 2008 : 17:11:25
Thanks v much for that Julian. The funds are going towards a variety of things including personal debts to family & friends & also emergency repais to my flat - i understand though that using cash for these makes it impossible for me to prove. Sorry to be a pain & keep asking questions, but now I know I definitely will be applying for insolvency, is it sensible for me to open a new account immediately as I do unfortunately owe a substantial amount to my current bank? It's not that I just want to pay back as little as possible -and I never intended to get in so much debt - but obviously I need to try & find the best possible solution for me to have a new start. |
| JulianDonnelly |
Posted - 14 May 2008 : 16:25:47
Hi Graham,
So long as you can give an explanation as to what the withdrawal of funds was for then it may not affect you.
This would, however depend on what the funds were used for.
May I suggest you speak to an Insolvency Practitioner if you are looking at an IVA.
In most cases if the proposal is refused by your creditors then there will likely be nothing to pay, therefore you could then look at the alternatives, but this would depend on the IVA firm you decide to go with.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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