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  • FIRST POST
    • LincsPaul
    • By LincsPaul 18th May 17, 2:22 AM
    • 70Posts
    • 24Thanks
    LincsPaul
    Receiving money as a gift during bankruptcy
    • #1
    • 18th May 17, 2:22 AM
    Receiving money as a gift during bankruptcy 18th May 17 at 2:22 AM
    Was Googling it but can't find much about it. Is it safe to say that if a family member wishes to give an undischarged bankrupt some cash (a significant amount - more than a few hundred but less than a few thousand) as a gift during bankruptcy, this is ok?

    Edit to give more info: this is for paying rent for a few months while I get back on my feet. Am not working so no IPA. My landlord collects it in cash.

    Does it need declaring and is it untouchable? For safekeeping can it be paid into my bank account?
    Last edited by LincsPaul; 18-05-2017 at 3:07 AM.
Page 1
    • mwarby
    • By mwarby 18th May 17, 7:44 AM
    • 804 Posts
    • 301 Thanks
    mwarby
    • #2
    • 18th May 17, 7:44 AM
    • #2
    • 18th May 17, 7:44 AM
    I'd be very careful here. If the money doesn't result in your income and expenditure having a surplus, you may well be fine. If it does cause a surplus the OR will likely want it.

    I think the key here is that it's a conditional gift, it's a money for defined expenses, with an expectation that if it's not or cannot be used for intended purpose should be returned

    I suggest you get professional advice, as potentially a fine line between falling into 2 traps. Trap 1 - you end up giving the gift over to the OR, either directly or indirectly, which would no doubt cause upset to yourself and family member. Trap 2 - you are seen to be misleading/defrauding the OR, which could easily get stressful and could end up with legal action being taken. I'd suggest you want to be able to tell the OR, but framing it in such a way to avoid the gift being claimed, or if can't be done being given to you in first place.
    • luvchocolate
    • By luvchocolate 18th May 17, 9:03 AM
    • 1,479 Posts
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    luvchocolate
    • #3
    • 18th May 17, 9:03 AM
    • #3
    • 18th May 17, 9:03 AM
    Ask them to pay the rent direct to the landlord.
    • roughsea
    • By roughsea 18th May 17, 9:37 AM
    • 66 Posts
    • 12 Thanks
    roughsea
    • #4
    • 18th May 17, 9:37 AM
    • #4
    • 18th May 17, 9:37 AM
    also thinking take some time off work as I'm not working to pay IPA. So can a friend pay my rent and utility bills as guessing this would not be an issue ?
    • LincsPaul
    • By LincsPaul 18th May 17, 10:49 AM
    • 70 Posts
    • 24 Thanks
    LincsPaul
    • #5
    • 18th May 17, 10:49 AM
    • #5
    • 18th May 17, 10:49 AM
    Ok thanks. I appreciate it's a minefield and don't want to be seen as deceiving anybody.

    My understanding was that any new bank accounts opened during bankruptcy wouldn't need to be mentioned to the OR and they would therefore not know about any deposits put in (for living expenses).

    The alternative is indeed that my family member pays the rent directly and perhaps gives me cash here and there for shopping etc. The question here is: will the OR wish to see receipts and/or evidence of where the cash came from? Or will they just be happy with my SOA and not question who is paying for things since I'm not working the next few months?

    Quite confused about how it all works with proving your SOA is correct if not employed.
  • National Debtline
    • #6
    • 18th May 17, 1:03 PM
    • #6
    • 18th May 17, 1:03 PM
    Hi LincsPaul

    You will have to declare any extra source of income, or lump sum of money you receive, to the OR. The best policy here is honesty. Explain that you are struggling to pay your rent and a family member wishes to do this on your behalf.

    If the money will solely cover your rent it seems very unlikely there will be an issue as it must be paid. But it’s important to explain the situation to the OR.

    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • LincsPaul
    • By LincsPaul 18th May 17, 1:11 PM
    • 70 Posts
    • 24 Thanks
    LincsPaul
    • #7
    • 18th May 17, 1:11 PM
    • #7
    • 18th May 17, 1:11 PM
    Thanks NDL. I will at all times tell the OR what my situation is. I was just worried they would start asking for paper trails and when a family member gives you a few hundred to give to the landlord that's difficult.
    Last edited by LincsPaul; 18-05-2017 at 2:24 PM.
  • National Debtline
    • #8
    • 18th May 17, 2:53 PM
    • #8
    • 18th May 17, 2:53 PM
    Hi LincsPaul

    I’d say the easiest thing to do is tell the OR before you start receiving payments from your relative. That way if extra money is paid into your bank account they are already aware what it is for. Or you could tell the OR that your relative will be paying the landlord directly.


    Susie
    @natdebtline


    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • TheGardener
    • By TheGardener 18th May 17, 6:14 PM
    • 2,167 Posts
    • 2,051 Thanks
    TheGardener
    • #9
    • 18th May 17, 6:14 PM
    • #9
    • 18th May 17, 6:14 PM
    I'd be more concerned that the landlord wants paying in cash?!!
    Does the LL give a proper receipt and/or complete a rent book.
    • debt doctor
    • By debt doctor 20th May 17, 7:41 PM
    • 4,165 Posts
    • 5,832 Thanks
    debt doctor
    Hi,


    As you are not working, doesn't Housing Benefit or Universal Credit pay all or most of the rent?


    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • LincsPaul
    • By LincsPaul 20th May 17, 8:01 PM
    • 70 Posts
    • 24 Thanks
    LincsPaul
    HB pays most of it but needs adjusting up a bit now I am unemployed. Not sure when that will happen. To cover the bills as well I am lucky enough to have relatives who are willing to help for a few weeks so I was just checking (on other thread as well) whether putting the money in my account would be a good idea or not.
    • UncannyScot
    • By UncannyScot 20th May 17, 8:05 PM
    • 723 Posts
    • 4,326 Thanks
    UncannyScot
    Ask them to pay the rent direct to the landlord.
    Originally posted by luvchocolate
    Exactly what I was going to say...
    BUGGRITMILLENIUMHANDANDSHRIMP I TOLD EM! - Foul Ole Ron
    It is important that we know where we come from, because if you do not know where you come from, then you do not know where you are, and if you don't know where you are, then you don't know where you are going. If you don't know where you're going, you're probably going wrong.
    R.I.P. T.P.
    • debt doctor
    • By debt doctor 20th May 17, 9:33 PM
    • 4,165 Posts
    • 5,832 Thanks
    debt doctor
    HB pays most of it but needs adjusting up a bit now I am unemployed. Not sure when that will happen. To cover the bills as well I am lucky enough to have relatives who are willing to help for a few weeks so I was just checking (on other thread as well) whether putting the money in my account would be a good idea or not.
    Originally posted by LincsPaul
    Then you should apply for a Discretionary Housing Payment (DHP) at your local council office to (hopefully) meet some or all of the shortfall.


    If someone is willing to pay things / commitments for you then they should pay it themselves and should never give you the money to do so.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • Johnsmith2016
    • By Johnsmith2016 21st May 17, 9:58 AM
    • 433 Posts
    • 224 Thanks
    Johnsmith2016
    Get them to pay your landlord.
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