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Kevin.52
Starting Member
2 Posts |
 Posted - 05 October 2011 : 13:44:12
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| I am facing a significant legal expense that is way beyond the value of my savings. Should I cash my savings and spend the money before the lawyers can get it? |
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glafy
forum expert
436 Posts |
Posted - 05 October 2011 : 15:13:38
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Hi Kevin.52
Not sure that I understand your post.
Are you planning Bankruptcy?
"Good things come to those who wait".....I'm a patient person but this is taking the Mickey!! |
Edited by - glafy on 05 October 2011 15:16:30 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 05 October 2011 : 18:28:07
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I agree that you need to post some more details.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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Kevin.52
Starting Member
2 Posts |
Posted - 06 October 2011 : 06:17:28
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I have ended up on the losing side of a court case and face significant costs, for both sides, running into hundreds of thousands of pounds. I cannot ever hope to pay these off so bankruptcy is one possible option.
I have a small amount of money, thousands rather than the hundreds of thousands I need, in a bank account.
My question is should I spend this cash now, I'm thinking a nice vacation, presents for the grandkids, lot's of intangibles, rather than loose it to solicitors, or will this have a significant negative impact on me if I go through bankruptcy proceedings?
I know some of you may have ethical issues with answering this question, but for what it's worth the legal system has really dealt me a bad hand here.
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debtinfo
forum expert
2826 Posts |
Posted - 06 October 2011 : 06:46:09
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| Well, with the details you provided the situation seems to be this, you are insolvent by the fact that you have more debts than assets, you have some assets but not enough to pay the debts, you wish not to pay the debts but to instead fritter away the money to put it beyond the reach of creditors over and above your normal expenses. Therefore in the case of a bankruptcy this would be what is called a transaction at undervalue and could have serious consequences |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 06 October 2011 : 08:06:55
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I agree with debtinfo - if you spend this money now and then go bankrupt, you will find that the OR will not look kindly on it, can overturn certain transactions and will most certainly result in you getting a BRU.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 06 October 2011 : 17:29:56
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Alas Kevin you are insolvent when they ask for the money and you cannot pay.
Is the solicitor going to petition for your bankruptcy ?
I also lost a civil court case suprisingly the other side never asked for or chased payment, I had other debts so took the plunge about 6 months after the court case.
I dont agree with frittering money away but things are difficult durng the year of insolvency.
you need to make certain that you are going to be able to pay your rent, have food in the cupboard have the essentials in life (not luxuries).
this money could pay your court fees and proffesional advice (prob not from a lawyer in view of your comments above)
Good Luck Richard,
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 07 October 2011 : 17:44:56
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I agree with Debtinfo, if you spend the money in the ways you have mentioned this could lead to serious consequences and isn't worth it to be honest.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
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I am facing a significant legal expense
