I am seriously debating bankruptcy this year. I have had 2 accidents at work and subsequently have been put on a different job where there is no shift pay or overtime so I am now losing over £1k per month and find I cannot now afford all my credit. I would go the IVA route but I retire in 2 years [if not before due to health issues]and I probably wouldn't be able to pay for the full 5 years. I have a mortgage value £95k with no equity, I will also be receiving approx £10k in compensation off one of my accident claims. My question is if I pay £5k overdraft and my wife's credit card of £4k as I as a second card user have been using this and save £1k to pay for bankrupcty how would the OR view this?
Very badly. It is a transaction at undervalue and the OR would likely try and recover the money from your wife and ask for further restrictions to placed against you
Are you saying you would use the money to pay off your wife debts rather thAN YOUR OWN?
It may be possible to offer that money pro rata as a full & final depending on how much your debts are.
NO it is my debt as I explained, I was the second card holder and it is me who has been using it. Regarding a final offer my debts are £45k so I don't think that they would take this as a final offer
Very badly. It is a transaction at undervalue and the OR would likely try and recover the money from your wife and ask for further restrictions to placed against you
I think you would have to pay all your creditors pro rata otherwise it will look like a preferential payment to your wife's credit card ( regardless of you running up the bill. You never know, they may accept the 10,000 as it is between 1/5 &1/4 of what is owed & iof it is the best you can offer.
I am seriously debating bankruptcy this year.
Posted - 31 May 2011 : 17:25:46
