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sooziesue
Starting Member
United Kingdom
6 Posts |
 Posted - 01 August 2011 : 10:53:03
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Hi
After 8 years of worry my husband and I were declared bankrupt a few days ago. This decision was forced as we can back off holiday to find a letter off my husbands employers advising him that he was going to take a 5% pay cut or lose his job. I was made redundant in April, My worry is that we have been on a DMP with CCCs since 2004 never missing a payment. However I have spent my redundancy now on lost wages, some furniture which was sorely needed and a holiday that the family has not been able to have for many years. I also paid back some money to my sister that I owed her when she bailed us out with the Inland Revenue. We over the years have paid back our creditors over 36,000, but this further set back has just tipped the balance. I am really worried I will get into trouble with the OR for spending my redundancy even though bankrupcy was not on the cards them. I feel I am hurtling towards another nervous breakdown.
Many thanks
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RandomGuy
Starting Member
14 Posts |
Posted - 01 August 2011 : 12:15:53
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Hi, I have found two things that have helped deal with my stress (I was made bankrupt a week and a half ago):
1. I find posting here helps, as the experts are very helpful, and so venting your concerns or even just telling everyone when things go right.
2. Disclose everything to the OR as soon as you can. I found my stress levels dropped significantly once I had got all the niggling issues off my chest.
Anyway, I am sure the experts will come along with some specific responses to your questions shortly. |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 01 August 2011 : 15:25:53
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Hi sooziesue, welcome to the forum.
How much was the redundancy and how much did you pay back to your sister.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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sooziesue
Starting Member
United Kingdom
6 Posts |
Posted - 01 August 2011 : 17:59:58
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Hi Vikki
I had a years salary which was about £26000, sounds a lot of money but we have had nothing since 2004 in the way of furniture clothes etc. Our fridge and freezer were broken and so was our suite.
I paid my sister £2000 which was what was left of a loan that she took out to stop the inland revenue coming in and stripping the house. She has since paid this off and had a receipt to prove that the two amounts coincide.
We are not bad people and have been living with debt for nearly 20 years in total and trying so hard to pay everyone. CCCS have informed me that if we continued with the DMP we would both be approaching 100 when it was paid off so we are really proud that we paid £36000.
Thanks again
sue king |
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RHB
Senior Member
1159 Posts |
Posted - 06 August 2011 : 09:21:35
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| Bankruptcy was not on the cards but you were insolvent if you were on a debt management plan. |
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 07 August 2011 : 17:36:34
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Hi Sooziesue
It sounds as if most of your redundancy was spent on household goods which were needed and you did not know back in April that you would be made bankrupt. However, that said, you were probably insolvent by then and should have used the money to declare yourselves bankrupt. Okay you would have lost the remainder of the money to the Official Receiver. I believe that you may get a Bankruptcy Restriction Order after your bankruptcy which may last between 1 and 15 years. You also repaid your sister, which you should not have done. If the Official Receiver thinks that you were insolvent at the time of the repayment, he can overturn the transaction and deman the money from your sister as you are guilty of preferring one creditor against the others.
I hate to be the bearer of bad news but the damage has been done and you need to look at damage limitation by coming clean to the OR.
Any further problems, please do not hesitate to contact the forum again.
John Blackadder
Bankruptcy365
For help and advice on the easiest and most effective way to a debt free future, please go to www.bankruptcy365.co.uk. |
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Hi After 8 years of worry my husband and I were declared bankrupt
