I have a personal injuries claim that is going to pay out very soon. My husband and I are intending to petition for bankruptcy in October (as this is the earliest we can afford the fees) and this money may come to us before then. I’m looking at getting around £7000 but this is just a drop in the ocean of our debts and wouldn’t stop us from going bankrupt. I know that money from a personal injuries claim would be ours to keep after we go bankrupt as it is exempt from after acquired assets but what happens if we get the money before we go bankrupt? Would we lose it all?
It would depend on how long before the hearing you receive the money. Very often people use this kind of windfall to either fund the bankruptcy, fund living expenses etc. As long as it is not hidden or spent extravagantly I'm sure you would be able to use some of it.
The OR also doesn't touch the injury element only that for loss of earnings. But if ther was money left they would expect it to be paid into the estate.
The compenstaion isn't for loss of earnings it's only damages for the personal injury. Does that mean the OR can't touch it and we'd keep all of it?
We would like to use some of the money to cover the expense of moving to new rented accommodation to improve our situation (as we live in the middle of nowhere and our rents quite high) so it's not that we're just greedy!
what happens if we get the money before we go br?
Posted - 08 August 2008 : 09:44:04
