HELP please... questions!!

freeme2009

Hi,

I've been a serial lurker on this forum for a while now as I've been considering bankruptcy as unsecured debt with credit card companies has become too difficult to manage.
I have sought advice from CAB and she agrees that BR is the best option for me. I am due to have a baby in 2 weeks time and on a very low income, made up from benefits. My OH had a serious injury while at work 4 months ago and is now signed off and receives incapacity benefit as he is currently disabled. Which means a serious drop in income which has resulted in me being unable to meet minimum payments. The benefit money we receive only covers the bear minimum for groceries and household costs, with no excess left.
My debt is slightly in excess of £17,000 and has steadily built up over the last 12-18 months, as I have had a number of personal problems and not been working.
How far back does the OR look into your statements etc?
I had a large amount of money that went into my account about 18 months ago. Which was a lump sum when my gran sold her house. She gave £10k each to myself and my 4 brothers and sisters, the total amount was credited to me then transferred to my brother for him to distribute between the rest of the family. With £10k left in my account as my share. Will the OR have any interest in this? If so how much? My gran is now infirm and has rapidly declined due to Alzheimers and I don't want to cause her POA any stress or concern due to my financial problems.
Can anyone help with these questions?
Any help would be greatly appreciated!

dvs

Do you still have this money?

I think the OR usually asks for 12 months worth of statements for all accounts but can ask for more depending on what they see/notice.

tigerfeet2006

freeme2009 wrote: »

Hi,

I've been a serial lurker on this forum for a while now as I've been considering bankruptcy as unsecured debt with credit card companies has become too difficult to manage.
I have sought advice from CAB and she agrees that BR is the best option for me. I am due to have a baby in 2 weeks time and on a very low income, made up from benefits. My OH had a serious injury while at work 4 months ago and is now signed off and receives incapacity benefit as he is currently disabled. Which means a serious drop in income which has resulted in me being unable to meet minimum payments. The benefit money we receive only covers the bear minimum for groceries and household costs, with no excess left.
My debt is slightly in excess of £17,000 and has steadily built up over the last 12-18 months, as I have had a number of personal problems and not been working.
How far back does the OR look into your statements etc? He will usually look at the last 2 years but can ask for 5 years.
I had a large amount of money that went into my account about 18 months ago. Which was a lump sum when my gran sold her house. She gave £10k each to myself and my 4 brothers and sisters, the total amount was credited to me then transferred to my brother for him to distribute between the rest of the family. With £10k left in my account as my share How much is left of your share?. Will the OR have any interest in this? Yes If so how much? He will want all of your share if you have it. My gran is now infirm and has rapidly declined due to Alzheimers and I don't want to cause her POA any stress or concern due to my financial problems.
Can anyone help with these questions?
Any help would be greatly appreciated!

If you do not have any money left you will have toshow how it was spent.

Best of luck with it and any more questions just ask. Also have a look at the Bankruptcy Help sticky at the top of the board and read as much as you can on here and ask questions

Oh! and welcome to the board

lisamummytoarchieplusbump

hello freeme2009

firstly i just want to welcome you to the forum.

do you still have the 10k if so the OR will take this to pay your debts im sorry to say just because its an inheritants its a money asset. and you may need to prove a paper trail about the rest as it may be seen as you recieved the money and transfered it to others. seen as the large amount went into your account first.

lisa

lisamummytoarchieplusbump

sorry questions already answered. slow typing as have a baby on my lap lol

freeme2009

Thank you both for your quick replies and welcoming me to the forum!

This money has been spent, I withdrew £5000 in cash and bought furniture for a new house that I had just moved into, I went on holiday and repaid some debt to a family member. With the other £5000 I steadily drip fed this out of a savings account to top up my earnings while working and then used the final £2-3k for day to day living costs when I stopped working in Jan 08. This is shown as going to and fro and e account into my current account.
I don't have any money at all now, as I said a very small income made up from benefits.
When I received this money, I was in a very well paid job, was used to living the high life as I had done for a few years before and had NO idea that 2008 was going to pan out as it did. That's why it was frittered away on luxuries, clothes etc. which I've had to sell all of now so I can make payments to the creditors.
Hope that all makes sense, sorry its sooooo long winded.

freeme2009

Hi Lisa,
Thanks for your reply.
The money shows as going in from my gran's solicitor, then £25,000 going to my brother straight away (internet transfer into his named account), then he asked me to hold a further £15,000 in NS&I bonds until my sis and bro had sorted accounts etc to have their share paid to. I did what I did with my share (as mentioned in prev post). When they had accounts etc sorted, I wrote to NS&I and they transferred this amount again direct to my brothers named account.
Hope that makes sense to you!
Again thanks everyone for your replies, I'm sick with worry with this horrible mess I'm in and just about to have my first baby!!!

lisamummytoarchieplusbump

freeme2009 wrote: »

Hi Lisa,
Thanks for your reply.
The money shows as going in from my gran's solicitor, then £25,000 going to my brother straight away (internet transfer into his named account), then he asked me to hold a further £15,000 in NS&I bonds until my sis and bro had sorted accounts etc to have their share paid to. I did what I did with my share (as mentioned in prev post). When they had accounts etc sorted, I wrote to NS&I and they transferred this amount again direct to my brothers named account.
Hope that makes sense to you!
Again thanks everyone for your replies, I'm sick with worry with this horrible mess I'm in and just about to have my first baby!!!

congrats on being about to drop a bubba(ive got 2)

then it should b fine about the lump sum going in then being transfered as there is a trail.

about the 10k being spent i dont think it would be to much of an issue as you had it when money was coming in its not like youve got given it, thought !!!!!! the debts blown it in a month then applied for br so as everyone in the country is finding out especially the banks things have gone from splashing out to drowning in debt no one ever knows whats around the corner

lisa

tigerfeet2006

Ok then so there is a paper trail for the rest of the money which is good.

You may have to do a lot of explaining to the OR about the disposal of your £10k but you shouldn't have too many problems and the worst they can do is issue you with a BRO/U. Link from the Bankruptcy Help sticky (recommended reading )

Bankruptcy Restriction Undertakings / Orders.

• Bankruptcy Restrictions Orders (IS)
• FAQ - Bankruptcy Restriction Orders / Undertaking ( BRO/BRU ) (IS)

Don't mention you repaid debt to a reletive though.

If only we had crystal balls hey!

freeme2009

As far as this money goes, I can explain where it all went. Very complicated I know, but there is a trail for it! Just don't want my families finances to be investigated and the OR to contact them, for example my gran and her solicitor and my siblings. I know in this day and age bankruptcy and debt is more common and there is much less stigma attached, I just don't want to have to ring each of my family members and tell them all my business as I'm quite ashamed of the mess I'm in. Also they all lead their own lives and I don't want to bring any stress or inconvenience to them.
Would the OR want to look into their affairs as well or will my explanation suffice?

lisamummytoarchieplusbump

i think as long as you have all the documents about how the money went in then they shouldnt need to contact anyone.

alot of people have gone br because of gambling so unless its been online no one keeps betting slips so its all just cash withdrawals so i dont think you will need to explain every penny as i couldnt i just said general spending they didnt want tesco reciepts so you should be fine