i am in a position where i may be forced to go bankrupt in approx 6months time, to date no orders are in place to make me bankrupt but i feel it is a realistic proposition. i currently have approx £20k banked and want to know can i offload this without this being viewed as fraudulent ie i am looking to get married can i purchase an engagement ring or pay for a honeymoon without this being seized?
well if you paid for a honeymoon there is clearly no asset for the OR to reclaim in bankruptcy. Likewise an engagement ring if not too expensive could be ok.That said if it were to come to light later that you were aware that bankruptcy was inevitable before the monies were spent that could cause you difficulties later with the OR.
With £20K in the bank are you sure that bankruptcy is unavoidable?
As John says there may be other solutions available that could avoid bankruptcy.
It may also we worth offering the creditors a pro rata offer ( however small) just in case they accept it. Additionally if they don't accept it will not hurt your case with the OR if you can demonstrate that you have pursued other solutions.
You should also be aware that when the OR finds out that you did have 20k ( and they will) you will be asked to account for what you did with it.
i,e, wedding ring, bankruptcy fees, possibly replacing / repairing car so it is OK for the duration of Br, professional representation , etc
I have seen folk that have gone through 25k in around 5 months and have been landed with a BRO because they were unable to fully account for the money.
Tread carefully and please get some propper advice
i may be forced to go bankrupt
Posted - 11 May 2009 : 20:05:12
