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paulgm_2000
Starting Member
49 Posts |
 Posted - 27 September 2010 : 20:35:58
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Hello everyone, I will be petitioning my own bankruptcy soon and have yet more questions sorry!
1. I have been receiving money from two friends that have owed me money of about 300 a month. I have been in an IVA but not told the IVA company but I was earning less than what I had told the IVA anyway. So I evens itself out. Both have finished paying me and I had used the money for some small spending on a cheap holiday in june and to buy a car a desperately needed for work. Hope the OR sees this as okay?
2. The thing I'm really worried about is that one of my friends that owed me money was an old business partner. His father lent him and thus our limited company 2000 pounds which we were unable to pay back when the business folded over three years ago. Anyway, my friend wanted it to appear to his father that we were both paying him back when in reality it was just him. So I agreed and he had also been paying me an extra 50 a month which he then wanted me to pay to his dad. We've been doing this for around a year. If I explain this to the OR (hopefully in clearer terms) does any one think this would be an issue?
Many thanks for your help |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 28 September 2010 : 18:35:21
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1. Probably not. Being in a debt management plan, such as an IVA, means that you are expected to be 100% honest with your creditors so not telling them about additional income will not sit well with the OR. Also spending any additional income on a holiday when you declare BR shortly afterwards rather than using the money to pay creditors will not look good to the OR.
2. Not too sure about this.
Looking at your past posts it looks like:
- You were in an IVA and not 100% honest about your income
- While in the IVA you received a cheque for £2k and used 1/2 the money to pay rent arrears to your girlfriend and 1/2 for the wedding
etc.
etc.
etc.
My advice would be to be 100% honest with the OR about your past finances including the additional income you have received during your IVA and what you have spent the money on.
Will you get a BRU? Possibly, but it is not the end of the world. It sounds like you didn't really take being in an IVA seriously and wanted to get rid of your debts but still use any extra income for your own purpose. In an IVA this would negate the IVA however in BR if you aren't 100% honest with the OR it could be construed as fraud and you could end up in court.
Be 100% honest with the OR, pay an IPA if required, do your BRU time if you get one and then get on with your life. Trying to hide money when BR will only lead to further problems.
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paulgm_2000
Starting Member
49 Posts |
Posted - 28 September 2010 : 20:02:12
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Hi again,
Thanks for the reply.
Disappointed that you think I have been dishonest etc. As explained in the previous post the money was earmarked for our wedding but since neither myself or my girlfriend were able to work for a period of time whilst her father was ill the money was used for household expenditure. If the OR sees this as an issue and give me a BRU/BRO I couldn't care less as looking after him was far more important to me and my girlfriend.
As I was earning much less than originally stated in the IVA anyway the additional money did not mean I had earn't more and been reckless with. Again if this is seen as being reckless or dishonest then I would be very suprised and disappointed at the system in this country.
I guess you don't know the whole story so not to critise you.
I do however, object to you saying that I 'did not take my IVA seriously'. When you are in an IVA everytime you use your card or pay for anything you have this voice at the back of your mind saying 'would the IP agree with this'. Thus pretty stressful, but you always try to abide by it.
When you are faced with such extreme personal circumstances such as ours financial matters are not even an issue. My girlfriend lost her previous boyfriend a few years before to cancer at 25 and her dad who was her best friend. I have put her first rather than our finances, earned less as a result and we also very kindly offered a week in our friends appartment in spain for free. If I spent a few hundred quid on some holiday spending and helped my girlfriend get through this painful time and the OR doesn't like it then so be it. They would be the one with the moral problem not me.
I will be completely honest with the OR and why you think I would be hiding money from the OR I don't know.
Thanks. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 28 September 2010 : 23:45:11
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Paul,
I take it the supervisor of the IVA is aware that you're going to declare yourself bankrupt, and are you in a breach of it already?
As for the loan by your co directors Father, this is now 3 years old or more, which in OR terms is regarded as quite stale, but at the time creditors would have objected as it would have been viewed as a preference payment.
As for the other matters, i.e. the IVA, extra income, the £2,000 etc, gettingoutofdebt is correct in what he says and that a BRO or BRU could result, but in the OR's office that I worked, it would have been seen as misconduct on a minor scale, as a result it would have been marked NFI(No further investigation), but no ED. So be upfront with the OR, as I used to realise that when people are in a financial mess they often don't stick to the script.
I dealt with people who had done far worse, but no BRO or BRU, just no ED. However, please remember that my reply is based on one OR's office, different OR's offices may deal with things differently.
Big Al |
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