I'm going to go Bankrupt within the next few weeks or so. I've stopped all direct debits including my mortgage so i can build some money up to give to my dad (he gave me a loan of about 5k when i bought this house).I will lose the house when i go BR as its in negative equity and i really dont want to keep it. I was thinking of drawing out approx £400 next week and then another £400 to give him when i'm paid again in a couple of weeks. I just wondered how the official receiver would view these withdrawals? Would he think i was trying to pull a fast one as i was giving the money to a family member? I was supposed to give my dad the money back when i sold the house but obviously this isnt going to happen - its the only way i can think i can give him a bit before everything is finalised. What do you think?
I am not sure how this will be viewed by the OR but paying your dad back could be seen as preferential and thus incurr a BRU or BRO and the OR could have the powers to ask for the monies back.
Not sure if i have helped at all, it may be that there is another way but i am not sure, maybe someone else can help you also.
Jo x Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
Just been fishing around and came across this on an insolvency website:
Entering into a preference. Making payments to some creditors in preference to others. You are not allowed to repay debts to friends / family members, while ignoring debts to other lenders.
Doesn't look like I'll be able to do this as I've canceled several direct debits to other creditors.I suppose its not a big deal -I'd rather make sure everything is above board rather than taking a risk and be issued with a BRO
Just related to that question - i will need to move out of my house within a few weeks as i am still living with my ex-partner and things have become untenable - i cant wait until the house is repossessed. I am taking custody of our litle boy who is 3 and taking him with me. If i take out enough for a deposit and first months rent on a flat, would this be considered an acceptable expenditure before my bankruptcy?
You'll have to play this one carefully as there are some potential pitfalls. I would suggest speaking to one of my colleagues on the helpline who should be able to advise you further.
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
how would or view these withdrawals?
Posted - 05 October 2008 : 09:47:44
