Hi, we are due to attend our bankrupcy hearing in July, I have been sent a cheque for 5k from a personal injury claim. I want to use this money to pay for the bankruptcy, and pay for rent/bond on a house and a van £2k for my husband for work. We are both going bankrupt and my husbands van was taken as we could not keep up the payments on it and the house will be taken also once the bankrupcy goes through. We have two children to support and I want to ensure that my husband can get to work to earn money and that my children have a roof over there heads.Is this going to cause problems?
When you are declared BR the OR cannot take any compensation received for personal injuries so if you received the cheque after you were declared BR you could spend it on whatever you want.
The OR will question what you did with the money but paying for rent/bond and the BR should be ok. If the OR agrees that your husband needs the van for work then it will be ok however if they don't then they have the powers to take the van and sell it to pay to the creditors.
When you are declared BR the OR cannot take any compensation received for personal injuries so if you received the cheque after you were declared BR you could spend it on whatever you want.
The OR will question what you did with the money but paying for rent/bond and the BR should be ok. If the OR agrees that your husband needs the van for work then it will be ok however if they don't then they have the powers to take the van and sell it to pay to the creditors.
Many thanks for your quick response. Do you know if this is still the case if part of the personal injury claim is loss of earnings? I think that most of the claim was down to loss of earnings are they able to claim this after we are declared bankrupt? If not do we have to notify them that we have recieved it after we have cashed the cheque once we have been made bankrupt?
Hi, we are due to attend our bankrupcy hearing
Posted - 14 June 2009 : 22:30:46
