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JDAN
Starting Member
11 Posts |
 Posted - 21 March 2009 : 20:38:46
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| Hi, I went bankrupt on the 12th march 2009, just prior to this I wrote a cheque to my partner for about £4500 out of my current account as i was advised that my account would be frozen. Given that all my direct debits were transferred to her account i didn't think there was anything wrong in doing this, as it was being used to cover bills. I am the only one who earns an income. I had my interview with the OR yesterday and was told that I have deliberately put this money out of their reach and they may take me to court. I was told if I spent this money i would predjudice my bankruptcy. My partner is a stay at home mum with savings, made up of a lump sum child tax credit payment received in the past and contributions from me in previous years before i defaulted on loan payments in 2006. My current wage does not cover our living expenses of looking after our four children and the bills, therefore she contributes the shortfall with the money in her savings account. The OR has said that I can afford to contribute towards my creditors. He has based this on that my income covers my outgoings and that now I am bankrupt certain bills don't need to be paid. If my partner was not meeting the shortfall with her savings this would not be the case. Her savings are preventing us from claiming benefits i.e. housing and council tax and this does not seem to sit well with the OR either. Can he take me to court over the money I moved, I genuingly did this to help keep us on our feet with the bills for as long as possible and can he expect a contribution of £400 a month to my creditors, because if so, my partners savings will have to fund this and they are running out rapidly anyway just keeping us afloat? Just to clarify, my loans were unsecured debts (apart from my mortgage - but that's another question) and in my name. It is me who is going bankrupt, my partner is not involved other than contributing from her savings and child benefit, tax credit etc. |
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John
New Member
United Kingdom
73 Posts |
Posted - 21 March 2009 : 21:52:25
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Hi
As only you have declared bankruptcy you can only receive an IPA based on your income minus your contribution to the household to meet essential expenditure. As your partner does not work she has no income to contribute and her savings belong to her and cannot be claimed.
The problem is the transfer.
When a bankrupt takes such action the examiner is suspicious of whether or not you are hiding other details to avoid any payment, that could otherwise be afforded, to your creditors.
Whatever the monthly expenditure figure to the household is, that is the maximum you should have transferred to avoid the funds being frozen. The balance should be made available for the OR to claim.
I would contact the examiner and explain that now you understand what you did was incorrect your partner will send a cheque for the £4500 less one month's expenditure.
It's far better to do this voluntarily than to leave the OR in a position where they have to apply to the court to reclaim the money back from your partner.
Which they can, and probably will, do.
John White
England Jackman & Spacey |
Edited by - John on 21 March 2009 21:53:58 |
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JDAN
Starting Member
11 Posts |
Posted - 22 March 2009 : 01:56:38
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| Thanks for your reply, the OR is sending more forms for a full break down so I will try to clear this matter up and hope he understands it was a genuine mistake on my part. |
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Hi, I went bankrupt on the 12th march 2009
