OR, family & definition of insolvent

downunderandout

Hi

Yet more questions! My concern here is mainly about the OR asking family and friends for money following my (hopefully successful) petition for bankruptcy.

For the last 5 years my wife and I have had seperate debts but a joint bank account into which both our wages have been paid and out of which both are debts have been paid. I'd always considered myself 'solvent' until we moved to Oz ten months ago - now it's become apparent that my earnings can't possibly cover my debts. However, on reflection a lot of the debt has built up over the last few years due to the fact that my wages didn't cover the cost of paying off debts *and* living in London. Will the OR consider that I was actually insolvent during this period?

Is the OR likely to start asking my wife for money back - are they going to consider that my wages helped to pay off her debts?

Also prior to moving to Oz we sold a job lot of furniture (nothing fancy, just cheap IKEA stuff) and a 5 year old TV to a friend for a token sum - is the OR likely to get sniffy about this or are they only interested in assets that are worth a certain sum?

I'm just worried about other people getting hassle due to my problems - any help much appreciated.

thanks

fermi

If your income in reality didn't cover your own debts at the time, then I can't see how they could consider that you have made any undue contribution to her debts. Or am I misunderstanding the situation?

If you had paid large discrete sums off her personal debts with funds that were obviously yours then that might be a little different, but it doesn't sound as if you did that. I can't remember anyone here who has any problems where it was simply a case of juggling joint finances.

I really don't think the OR is going to be bothered about the fate of a load of cheap furniture either. The OR is normally only bothered about items/assets that would realise something at auction. In practice that means things like expensive antiques, paintings, new high end consumer goods etc.

downunderandout

thanks Fermi - that puts my mind at rest a fair bit!

LilyBart

Fermi's right. An accountant or business analyst might take the view that you were insolvent back in London, but an OR is likely to view the insolvency as dating from when you perceived yourself to be in trouble, ie after you moved.