What happens to money owed to family members when an individual is made bankrupt? In my example, I give all remaining monies, after living expenses, to a family member who lent me money in the past. Will this be permitted to continue after being declared bankrupt?
Any family members that are owed money prior to BR should be listed on the SOA. When you go BR, this debt is written off as well. Technically, it would then be illegal for you to pay them back unless you are paying off your other creditors as well.
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
What happens to money owed to family members when
Posted - 21 January 2009 : 09:45:39
