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acm
Junior Member
United Kingdom
274 Posts |
 Posted - 30 August 2008 : 16:05:13
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| Hi all, I am new to this site but not to debt. For five and a half years (since I split from my wife) I have been with a debt management company paying off my creditors but had to drop to a minimum payment of one pound a debt a couple of years back following a heart attack and giving up my job. I am now self employed but earn an abloute pittance and in fact qualify for working tax credit and only survive financially because of the wonderful support I get from my partner. After all these years, my wife (still not divorced but oh so nearly) has agreed a settlement with me. It is not a lot (approx £20K) but it would give me the ability to pay back money lent to me from family and friends including a large amount from my partner and not forgetting approx 5K for my solicitor. I feel duty bound to sort this out as for so long I have been promising these people once I get a settlement then I will pay them back. However, after this I will only be left with a small amount of money. The debt that is still being managed for me stands at £38K with no realistic way of me ever paying this back. My health is fairly good and I just do not want the stress in my life that occurred prior to my ill health. I am therefore thinking of going bankcrupt sometime next year but my question is how far back does the OR go when looking at your finances and if I went bankrupt in say 6-8 months time would that be a fair amount of time to pass from my small settlement from my ex? I have absolutely no savings whatsoever at the moment, no home as it is in my partners name, in fact I have nothing except for two pensions that do not reach maturity for another 15 years. Many thanks |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 August 2008 : 16:15:34
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Hi there and welcome to the forum.
If you received £20,000 and then elected to prioritise ( or prefer ) some crediotrs rather than treating them all equally then I am confident that if you were to go br in the timeframe discussed then the Official receiver would actually reverse the payments you made and quite legally demand these payments back.
There may be other ways to clear all of the debts perhaps through a one payment IVA or a negotiated settlement with each of the creditors.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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John
New Member
United Kingdom
73 Posts |
Posted - 30 August 2008 : 18:55:23
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Hi
Preferred payments are recoverable if made up to 2 years before your Bankruptcy. Therefore you would have to wait 2 years minimum from when you pay those you wish to pay from the £20K before you could consider bankruptcy for the balance debts.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 August 2008 : 19:18:02
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Hi John
I suspect that it the Official Receiver could demonstrate that you were insolvent at the time you made a preferential payment AND that your mindset was to deliberately favour certain creditors ( especially family ) then there may well be no time timit as to the claw back.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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John
New Member
United Kingdom
73 Posts |
Posted - 30 August 2008 : 21:45:37
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Hi Paul
yes I know where you're coming from. Whilst the SoA only asks for details of such payments stretching back 2 years the OR could look back further.
In particular if he picks up on the settlement if it came from the sale of the previous matrimonial home if it was sold within the 5 years prior to BR.
If not I'm wondering where the OR could pick the whole thing up from as it wouldn't be on the SoA anywhere and the BR is unlikely to disclose.
That said, if all of the family and friends claimed the returned monies had been spent then the OR's not got much ammunition other than to impose a BRU.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 31 August 2008 : 10:20:57
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Hi ACM,
I hope that you get everything sorted out for you.
Take care and keep posting.
Jo :)
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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acm
Junior Member
United Kingdom
274 Posts |
Posted - 04 September 2008 : 10:15:48
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| Thank you to all those who have given advice. I am sorry for not coming back sooner but for some reason could not find my original question on the forum and hence your replies. I appreciate your professional advice regarding legalities but I have a lot of moral issues to deal with here and frankly there is not a lot left that anyone can throw at me that has not already been done. This is not me being glib but bankruptcy will not effect my self employment, my children do not see me anymore and if I make cash payments to certain personal creditors then it can not be traced. I would like to spend just 6 months living normally after nearly 6 years of having creditors around my neck. On top of the debt the debt management company handles for me, I owe my bank £10K that built up after my ill health. My tax return for last year made a profit of just £650 for my first 8 months of business which works out at £81 per month wages hence the reason I receive working tax credit. This year is only slightly better. However, enough of my sob story. A serious question if you can help. All the debts that I have been managing for all these years always were and still are in my name only. As my ex wife is not selling our old home to pay me this £20K as she is borrowing it off a family member, can the OR or any member of the courts try and get the house sold from under her to pay off this old debt? I have to stress we have been seperated nearly six years as well. Both she and I have moved on. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 September 2008 : 11:45:22
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Hi ACM,
with £38k unsecured debt at £20k in cash, I believe a Full & Final IVA would be a more appropriate solution. You require a lum sum of a MINIMUM of 40p in the £, which when paid to the creditors, settled the debt fully. The whole process takes about 90 days and has less impact on your credit rating than BR.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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acm
Junior Member
United Kingdom
274 Posts |
Posted - 04 September 2008 : 13:54:26
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Hello Julian
Thanks for the advice, but I mentioned above, on top of the (£38K)unsecured debt (which is 8K less than it was five years ago)I also owe my bank another £10K which is my total overdraft and sole credit card. This has been maxed to its limit since my heart attack and surgery nearly three years ago and since I had to leave my job as I had no income for some time. While I think of it, when I started my small business 14 months ago, I had a van which I had to give back after 7 months as it was not paying for itself. The final settlement on that left £5K outstanding as well. Therefore, if you add up everything, my true debt is nearer £55K. Unfortunately, my partner has got herself into some debt while trying to help me and pay all the bills too so I am left with a dilema as to who should benefit from this £20K I am getting. Therefore, she will be the first one I sort and frankly the consequences do not concern me. As I said before after six years of trying to sort my mess out the banks can whistle. I have tried to work with them but all they ever did was take more until I had nothing left. So what little I do have will never go to them. The interest they have made out of me in the last 30 years more than covers what I owe so I will not loose any sleep. Once again, please do not read this as me being flippant. I have just come to the point where I no longer care and frankly would actually get satisfaction at pulling the plug on some of these demon financial institutes. Enough said I think. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 September 2008 : 14:09:25
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Hi ACM,
The good news is that with a lump sum like that, you have several options that would work for you.
I would suggest speaking with one of my colleagues on the helpline who will be able to give you some free advice and point you in the right direction.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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grantspants
Junior Member
United Kingdom
297 Posts |
Posted - 04 September 2008 : 23:57:50
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| Sorry for intruding on this thread, after reading this all, what would happen if acm's wife (ex?) were to just pay these people direct and take him out of the equation altogether? |
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acm
Junior Member
United Kingdom
274 Posts |
Posted - 05 September 2008 : 10:40:20
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Hello Grant
I think you will find the ex would rather chew broken glass than be associated to me again after nearly six years apart!! My solicitor did tell me that if I truly needed to then I could try and force half of my original debt onto her as it was accrued while we were still together even though it is all in my name. There is no certainty I would succeed but what is certain is she would have to sell the house and my children would never see me again if I did that to them and their mother. |
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38K with no way of paying this back
