Rent before BR and stop paying mortgage

fiveyearplan

I think skylight means DON'T do a cheque or bank transfer.

dickoa

Yes she is going BR too

dalip

Be very very careful. The OR wll want to see bank statements for the previous 12-24 mths and if there is a set amount going to your MIL then be prepared to explain it big time.. You need to really look at this before you go any further. Just one payment to your MIL and not other creditors is going to get the OR's back up so be very wary.D

dickoa

Well shes been making the payments out of her bank for ages to NR directly and i have made the odd payment when she couldnt make them when you say it will get his bak up what do you mean what can he do etc

skylight

Making payment for ages past is not the problem. If you were to continue paying this particular one AND stop paying all your creditors, then you are showing a preference to a creditor. If you stop one, you need to stop all.

The OR will end up going through your finances with a fine tooth comb, rather than the check over we normally get. He will play by the book (expect info within the set period rather than you get any leeway) etc. He can impose a BRU/O. This is a Bankruptcy Restriction Undertaking/Order. It means that the restrictions you are under whilst BR for the 12 month period (no credit over £500, certain jobs are closed to you etc,) can be extended up to 15 years. Plus he can demand any monies paid out, to be paid back.

If you stop paying everything else, you HAVE to stop paying this one too. Paying it on the QT is the only option available to you.

dickoa

(expect info within the set period rather than you get any leeway) what do you mean?

fiveyearplan

Dickoa, please don't worry about this but don't make any more payments out of your (or OH's) bank account. If need be give your partner's mother the cash to pay it herself.

RichOneday_2

I agree - not a good idea to get the OR's back up.

They are nice enough people just doing a job until they get a whiff of underhand dealings. The main things that put you under much greater scrutiny are:

1. Preference - paying one, or some, debts in preference to others while knowingly insolvent. However odd it may seem the safest way is not to pay any non-priority debts in the run up to bankruptcy. If this creates surplus cash in your accounts so be it, you'll probably keep it unless it is several thousand.

2. Fraud, obviously.

3. Taking out new credit without any realistic prospect of paying it back.

4. Worsening a creditor's position while knowingly insolvent.

5. Significant evidence of gambling debts. Don't worry about the odd £50 here and there, but if, say, 50% of the bankruptcy amount was clearly due to gambling in the last 12 months then a BRO is virtually certain.

There are others but ORs are realistic and understand that all creditors can't be treated equally all of the time, but deliberately favouring one is another matter.

dickoa

Just how far back into your history do they look not that ive been that bad just had a scan at my online bank statements for the last three years just wondering do they go this far back into it also is it common to get refused BR my partner is stilling very cautious and thinks that if we do move and stop paying everything etc and then we get refused we will be in an even worse position

RichOneday_2

dickoa wrote: »

Just how far back into your history do they look not that ive been that bad just had a scan at my online bank statements for the last three years just wondering do they go this far back into it also is it common to get refused BR my partner is stilling very cautious and thinks that if we do move and stop paying everything etc and then we get refused we will be in an even worse position

Tha main reason you would be refused bankruptcy was if you hadn't taken advice, ie you maybe didn't understand what you were getting in to.

Its not a really a matter of being refused just whether you will get a BRO. Have a look through this to see all the BROs recently imposed and why (this link seems to be relevant to a lot of people and can actually put your mind at rest):

http://www.insolvency.gov.uk/databases/ddirector/viewbrobrudetailslatest.asp

They will go back as far as they like to get a good picture of what led to the bankruptcy, but usually no more than 2-3 years.