My husband has decided to go bankrupt - we're just saving up for the fees, but one thing is still worrying me. He has a basic bank account with Barclays, which i've been told he would normally be allowed to keep after bankruptcy, but he also has a Barclaycard which he hasn't used for years until the middle of last year when he used it to pay a deposit for a friend's holiday (as they didn't have a credit card) and then the friend paid him back - but of course he didn't pay it off!!! So now I'm not sure whether he should include this debt in his bankruptcy or not. He already knew he couldn't pay his debts when he used the card (he was trying to arrange an IVA at the time) so the OR won't be happy about him using it, also could he lose his bank account? Would it be better to try to pay this debt of before petitioning (it's for £200 - much less than his other debts) or would that be seen as being preferential to them?
as you know all debts must be included and to pay the £200 would be seen as preferential albeit to a creditor and not to a friend or family member. So not really an issue. For that kind of sum you could have used the card for any number of reasons but technically on section 3 of the SoA under "monies owed to you" the friends details should be entered and yes the OR would chase it.
Thanks so much for the advice. Just to clarify - the friend did pay my husband the money, my husband just didn't pay off the card! Do you think Barclays would close his bank account due to the Barclaycard debt? He needs a bank account for work and I've been told that the only banks that will give a basic account to an undischarged bankrupt are Barclays and Co-op (who he owes money to as well!).
What's best??
Posted - 30 January 2009 : 16:04:01
