Hi Im going to apply for Bankruptcy after speaking to a advisor from here. But im also due to be made redundant in November. I owe family members money and intend to pay back what i owe from my redundancy. Plus is it possible to 'hide' the rest my money in my parents bank account and will the court as were my money has gone if i apply for bankruptcy a month AFTER my redundancy?
If you pay your family members in favor of your other creditors I think you can be subject to a BRU. You must not 'hide' money, the OR will ask where it has gone, what it was spent on and hence find it, and it will be needed to offer to your creditors, however you can use some to pay for the petition and your living costs up to BR.
So they will check up on my employment history and can find out what redundancy was payed to me? But what if i spend it then go bankrupt, will that be a problem?
AFAIK They will see from your pay slips what you were paid and will want you to account for it. If you spend it in advance of BR, it will likely be seen as 'disposing of an asset which could be used in favour of creditors' and you could well be looking at a BRU/BRO.
What would happen if i went Bankrupt many months after my redundancy? Say 6-8 months after? I have to look at all my options and try do whats best for me and my family?
Hi stu if you receive £15K in redundancy and go BR a month later without being able to account for the money I should warn you that you may not just get a BRU / BRO. Over a year ago someone in my area removed £12K in cash from his account and declared bankruptcy the following week without disclosing the withdrawal. Needless to say the bank (as would the inland revenue) on being notified of the person's BR informed the OR of what happened. The guy got 6 months at her Majesty's pleasure.
Over a year ago someone in my area removed £12K in cash from his account and declared bankruptcy the following week without disclosing the withdrawal. Needless to say the bank (as would the inland revenue) on being notified of the person's BR informed the OR of what happened. The guy got 6 months at her Majesty's pleasure.
Hi John I understand that declaring Bankrupt a aweek after withdrawing the money is a stupid thing to do but would they question it 6 months after me getting rudundancy and me saying some or most of it has gone?
Hi stu Clearly the longer you leave it the more justifiable it would be to have spent it on general living expenses.
Hi omg he didn't go to prison for going BR it was the degree and flagrant misconduct. Plus the money was not declared on the SoA. When you submit your petition you sign an affidavit confirming that the content is accurate. You have commited perjury with such a failure to disclose.
Redundancy and Bankruptcy
Posted - 12 August 2008 : 18:44:07
