| Author |
 Topic  |
|
|
hopeful77
Starting Member
9 Posts |
 Posted - 24 November 2011 : 10:56:18
|
After much discussion it looks 100% certain my wife & I will file for Bankruptcy; however I need help on something.
We set up a voluntary payment plan through a charity in March & all was well, however in the space of 6 weeks, I lost my job, our washing machine blew up, our cooker stopped working & to cap it off during a storm we had a tree fall down, wiping out both ours & our neighbours fencing (An exclusion on home insurance, thanks!) leaving us to pay for the damage &d the tree to be removed, not cheap! During this period we had to use an old credit card with no balance (Not included in the payment plan) on to survive & pay for all of the above.
Fast forward to the present we have been offered a sum of money from a relative unaware until now of our problem. This sum would clear the balance & enable us to pay for the Bankruptcy. Now I think clearing the balance to zero would be the best option, but is the option that the courts would want to see? How would the OR interpret the events that led to balance being accumulated & would it look better clearing the balance before Bankruptcy? If not, what would be the best use of the money in the courts eyes?
Now both my wife are aware that we shouldn’t of done this, however after studying the terms of our payment plan we should have advised them if we wished to enter into a new credit agreement. However this card was taken out before we entered our plan, what I’m getting at is, although it doesn’t mention it anywhere, can I be prosecuted for this? Spending was purely for the emergencies above, not lavish holidays or a brand new 3D TV etc. We didn’t use it with a view to not paying it back, as I was about to get a job, which would enable both the payment of the old card & also for us to start paying back our other creditors with the contractual minimal payments & get off the payment plan, in short life was about to get rosy, however after broken promises etc. this never materialised.
Any help would be great.
|
|
|
Jane.l
Average Member
511 Posts |
Posted - 24 November 2011 : 12:17:01
|
| Well. you have used credit whilst you knew you were insolvent and also if you pay that balance off, you are preferring a creditor so a BRU/BRO may be order |
 |
|
|
hopeful77
Starting Member
9 Posts |
Posted - 24 November 2011 : 12:21:59
|
Hi Jane,
Thanks for the response. can you elaborate on BRU/BRO please.
Thanks. |
|
|
|
hopeful77
Starting Member
9 Posts |
Posted - 24 November 2011 : 12:46:04
|
@Jane.I
Forget my last post, I've researched it myself.
So going back to a few unanswered questions, do I pay it back? or not? what's best in the courts eye's?
Like I said it wasn't for a grand lifestyle, it was to survive, eat, pay the mortgage etc. Yes it was wrong but you do what you can at the time.
Any constructive help would really be appreciated.
Thanks again for the help. |
|
|
|
Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 24 November 2011 : 13:28:48
|
sorry hopefull
can i stop you and wind back
a BRU / BRO is always possible but it is used in the extreme cases, this is gambling, going a mock with credit cards. you still need to survive feed cloth your family so you would have good argument why you spent this money. OK fence may cause some questions. what has been done has been done. If the OR questioned every one that went BR they would have thousands of BRO / BRU
if you use the family members money to repay the one credit card you have shown preferential treatment to a creditor, the OR may choose to retrieve that money and distrubute it equally amongst creditors.
thank family friend for money take ask for enough to pay for bankruptcy (and if appropriate the support of an expert).
you may need the family friends support in the year after bankruptcy, as pounds and pennies may be tight
Good Luck Richard,
|
|
|
|
hopeful77
Starting Member
9 Posts |
Posted - 24 November 2011 : 13:44:15
|
@ Richard P
Brilliant advice, thanks again as always. That's the kind of information I was hoping for.
The only reason the fence was done was because the neighbour kicked off about it, probably still shaken up after seeing a giant Eucalyptus tree resting on his conservatory!
In using the card, the decision my wife and I took was, if its an emergency then we have no or limited options.
I can now see how the preferential treatment becomes a problem, I thought (naively) that paying it off would be the best option but clearly not.
Thanks again
Hopeful77 |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 24 November 2011 : 14:41:03
|
| Richard, if someone else pays a debt off for you it is not a preference as you have not deprived your other creditors of an asset |
|
|
|
Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 25 November 2011 : 11:12:11
|
of course debt info well presented and correct
still think family money would be best used to help plan future thou
Good Luck Richard,
|
|
|
| |
Topic |
|
After much discussion it looks 100% certain we will file for bankruptcy
