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baxi
New Member
United Kingdom
66 Posts |
 Posted - 01 April 2009 : 15:45:49
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Can someone please advise, i received some money after an insurance claim. I had the cheque made out to a relative, i have spent some and let the relative keep the rest as i owed them plenty.
I expect to have to go BR in the next 2-3 months, is there anyway the OR will find out about that money? |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 01 April 2009 : 16:42:13
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Hi Baxi
Not too sure about that one but Im sure someone will be along to advise you shortly.
One thing I will say is that on your Bankruptcy forms you have to declare any funds that you have received within the last five years I think so by law you would have to declare it. Better to declare it before you get found out!
Maizie |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 02 April 2009 : 00:58:43
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As the judge said to me "all that is expected of you now you are bankrupt is to cooperate with the OR, if you don't you could be arrested!"
He wasn't trying to scare me he just wanted to point out that in exchange for not having to pay your debts all you have to do is be fair and do what they ask and be honest with them.
Dave |
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John
New Member
United Kingdom
73 Posts |
Posted - 02 April 2009 : 07:09:23
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Hi
as you are aware that your bankruptcy is imminent then this is preferential treatment.
If your own account is overdrawn and would have eaten into the money then diverting your funds to a relative is ok. It's the repayment part of this action which is preferential.
However, this is all assuming that the insurance claim monies would be claimable by the OR if and when you are bankrupt. What exactly was the insurance payout for?
Loss of earnings ; personal injury ; loss or damage to an asset?
John White
England Jackman & Spacey |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 02 April 2009 : 09:42:10
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John,
It was for money to replace items stolen from my home. |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 02 April 2009 : 16:54:50
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Sorry need to bump this up,
John please see my previous post, thank you. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 02 April 2009 : 17:55:05
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From what i can gather if it is to replace general household stuff that you lost and have be having to do without and they don't have values higher than £250 each it is unlikely the OR will question you replacing them with the money.
If you spend the money on general household expenses and living sensibly, not gambling or preferentially paying off debt, again there should be no problem,
How much are we talking about roughly 100s or 1000s
Dave |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 02 April 2009 : 18:03:48
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| several thousands, some of which has been spent and some more of it will be spent before going BR. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 02 April 2009 : 18:22:56
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If you are spending it on gambling or items of value like plasma tvs then i think officially you will have to tell the OR when you go BR.
Partly because you have items of value to declare.
I think that if you spent money on living expenses or justifiable things you'd be ok.
I believe(but stand to be corrected) non extravagant gifts for friends/family would not be frowned upon (no buying your partner a ferrari)
Dave |
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John
New Member
United Kingdom
73 Posts |
Posted - 02 April 2009 : 19:38:16
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Hi
items stolen from the home = assets and therefore the payout is in lieu of said assets.
Assets are claimable by the OR unless they are essential to your basic need.
Household goods of moderate value will not be claimed. If any of the items were essential and have been replaced fine. If they were no essential then they are claimable and the same applies to the insurance payout unless spent (you are not BR yet).
So avoid preferential payments and spend only that which you need to spend. The balance is likely to be claimed.
John White
England Jackman & Spacey |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 02 April 2009 : 19:47:24
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| is there anyone i can speak to via email or on the phone privately about this? |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 03 April 2009 : 00:36:02
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if you look to the left of the screen there is a section where you can e-mail an expert.
Alternatively there are some that have websites or other contact details
I personally used Reviva to help me and they were great but there are others as well.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.
Life's too short!!! |
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Insurance claim
