Paying for flights to declare bankruptcy

downunderandout

Hi everyone

Got another question that will probably prove a stumper but I like to check these things anyway.

Here's the deal - I'm in Australia and will be travelling to the UK to declare myself bakrupt (see this thread for more detail). I know there's the possibility of getting third parties to assist with this but I figure it's best to do it in person.

So... I have no choice but to take the money for flights and other costs out of an existing flexible loan. We can think of no solid reason for my wife and child to come with me, but they will be coming anyway - hopefully you can all understand that she'd want to be with me at a time like this.

I don't know for sure if the OR will ask how we paid for the flights or if they'll be at all interested in recent activity in what is a fairly old loan. However if they do question the issue of payment for the flights we were going to say that it came out of my loan as a gift to my wife and she's prepared to pay her share of the flight costs back to the OR on request.

Does that sound reasonable to anyone? We don't really have any other course of action (i.e. no other way of paying for the flights) and we have no intention of trying to fiddle the OR in any way. I just figure if my wife is prepared to pay that part of the money back the OR won't have any problems???

(btw - I do have an appointment with a CCCS counsellor but not for three weeks - hence asking this odd question here - thanks in advance)

GettingHopeful

Hi, have read both your posts and though I haven't a categorical answer didn't want you to think you were being ignored in any way.

I have to say the OR didn't query any of my recent expenditure in the run up to BR most of which was trying to get the money together to do it, plus pay certain things. The CAB said the worst they could do would be to slap wrists and a BRO, so on that basis in your shoes, I would just do it. As you say if your wife is asked to repay the money she will, but the run up to BR is difficult emotionally, and family support vital to your well-being - it was to mine, nearly went off the rails at one point. Your nearest and dearest have a valuable part to play.

All the very best.

blueopal5577

Useful response getting hopeful.

Downunderandout I've posted a couple of questions, basically about expenditure before BR, what upsets the OR etc etc.

I'm going to be getting out a NEW loan in order to go BR. This isnt ideal and could end up with me getting a BRO but I need to go BR before I go out of my mind with stress (bailiffs are now involved)

I think having explored the legalities, people's opinions, and experiences my conclusion is... you've got to do what you need to do to survive with your head in tact.

You need your wife with you, and accessible for support and simply if any decisions have to be made. My hope / presumption is based on people's experiences that whilst some ORs are bad, the majority are not vampires, they just have a job to do. If you explain the situation, it makes sense. Its not like you redecorated your house and bought a plasma tv, you know? I think the rules are to weed out abuse of the system. From all my research about BR, and its been a lot bc ive been too anxious to file since my decision in October, is that by the time you're in the court, they know youre at the end of your tether. If you are honest and co-operative, my guess is they'll work with you.

I'm hoping that when I get the chance to explain that I have no credit available to me apart from high interest CCJ loans (which i'll have to take out for the fee) they'll see my debt is based on living expenses and ill health, and they wont give me a 15hr BRO! lol.

Anyway... btw... I wouldnt even say it was a gift to your wife. That would just prompt the question, or at least the thought "is this the time to be giving your wife a gift?!" Be honest, say you needed her there for support, and if neccessary she'll pay it back. Gifts are a luxury, support is a neccessity.

fiveyearplan

How long have you been in Australia? Are you planning on coming back here? I'm asking because if you are planning on staying over 6 years all your debts would be statute barred anyway so I don't see the point in paying all that money unless there is a good reason. Perhaps I'm missing something though.

Are there any pitfalls to my thinking?

downunderandout

Thanks to all three of you for your replies - they've certainly put our minds at rest. I guess my main worry is that we'll have to be taking a might chunk of money out of my existing flexible loan to cover the various expenses of going bankrupt and I'm a bit nervous that the loan company concerned might try to argue a case for fraud (on the basis that I'm taking out credit in the full knowledge that I'll be going bankrupt).

That said that there's not much we can do about it - we have no other choice - I'll co-operate fully with the OR and if they decide to issue me a BRO then I don't really see that it can affect me very much (or at all) in Australia. I never say never, but I certainly don't have any intention of coming back - the only possibility is if we decide to take my son to a UK university, and the earliest we'd be returning to do that is in 13 years)

fiveyearplan

You do realise that if you are living all that time in Australia your son would be coming to UK as a foreign student and it would be very costly.

downunderandout

fiveyearplan wrote: »

You do realise that if you are living all that time in Australia your son would be coming to UK as a foreign student and it would be very costly.

Yes we do, thanks - but I think there's an option that if we live in the UK for three years beforehand he'll be eligible as a UK student.... however this is a whole 'nother question, and many years down the road... thanks for the thought anyway