Bankruptcy & redundancy

charlie12345_2

Can somebody help please.

Have decided to try and keep my creditors at bay til August when I am
being made redundant.
I am expecting a redundancy payout of between £2,000-£3,000.
What sort of view would be taken if I bought items I could do with replacing in the home such as a washer and cooker and pay back what
I owe my family (ap £1k) from my redundancy then apply for bankruptcy?

Any ideas?

PabloEscobar

As far as I am aware, buying the essentials around the house would be fine, as you would need these to run the home.

As for paying the £1k back to family, I believe the OR may see this as preferential treatment with regards to who gets paid what amount, and could possibly ask your family for the money back.

Having said this, I am far from an expert, and the answers I have given are just what I have picked up from reading these boards over the past few days. I`m sure someone who has been through a similar situation, or who knows more about ther ins and outs of BR will be along shortly.

charlie12345_2

Thanks Pablo, didn't realise the OR could approach my family for money back - yikes!!!
We lived on their money for a few mths before I could claim working and child tax credits in April and also my sister feeling sorry for us paid the bal of £600 for my families holiday!!!

PabloEscobar

charlie12345 wrote: »

Thanks Pablo, didn't realise the OR could approach my family for money back - yikes!!!
We lived on their money for a few mths before I could claim working and child tax credits in April and also my sister feeling sorry for us paid the bal of £600 for my families holiday!!!

I think they can, unfortunatly. Although, from what I know, a lot is down to the individual OR, as some can be quite lazy and not do too much, whicle others can really look into everything.

I`m in a similar situation myself, and have spoken to both CCCS and national debtline about what to expect. I`d seriously advise speaking to these, especially national Debtline, as they were a great help.

charlie12345_2

Scarey!!!
Would be such a shame for all my redundancy just to be taken - if I could have avoided bankruptcy by giving them the lot I would - but it won't!!!

Good luck with everything you're going through too.

Merry_Gentry

Basically Pablo is correct - buying essentials for the house should be fine (as long as you paying for them in full and not using credit). However, paying back family would be seen as preferential treatment and the OR would most likely chase. Of course, your family could say the money has already been spent and they cannot pay it back, but it would probably be unnecessary grief. There is nothing to stop you paying back your family from your surplus once you have gone bankrupt however.

w-inthepoo

To be honest the whole pref treatment thing really ticks me off...

Surely if there was enough to go round then everyone would get paid and you wouldn't be insolvent and consequently bankrupt. But there isn't so in essence prior to bankruptcy there is a good chance that pref treatment has been given to creditors already as one tries to keep it all a float.

For example you want to give your parents £1000 which you legitimately owe them and yet you probably have been giving preference to other creditors over them, yet when you give them, a friend or a relative, preference over another creditor all of a sudden you are the bad guy.... it stinks.

But that's just my 2 pence's worth

skylight

If you chose to pay your family then do so. If you want to buy essentials with the money then do so. You need to explain to the OR as to what you have spent it on. So explain. Of course, if its all in cash then the OR cannot trace it so will have to accept your version of events.

out_of_cash

hi all

i had a £200 tax rebate they wanted every penny of that i also had £400 in a savings account they wanted all of that.i think if you purchase what think is ridiculous extravagence like 1.5k cooker & other top end goodies around the house the crap might hit the fan so to speak .i also had a car worth less than 1k and had to go to court to keep it:beer:.guess i was one of the lucky ones:rotfl:.i know pensions is another thing they look at.

out_of_cash

hi w inthepoo,

totaly agree with you regarding the whole pref treatment thing ,i think they should look closer at the !!!! up the banks have made although people obviously borrowed 2 much they sure as hell lent to much,i think i read somewhere on here the other day that some looney made a comment that they dont waste money"on another planet" i owed my family 3k b 4 i went br tried to repay all the creds just couldnt keep up i wish i had paid my family back 1st as the banks and visa card companies are sharks amex helped me out by when i was 1 st unemployed raising my apr from 4.9% to 34.6 that really helps dosent it, shame the OR cant claim money back from these greedy sods and say to em something that they find it quite unreasonable that they gave us all pref treatment of the highest degree pushing us into BR.

charlie12345_2

Cheers everybody, thats certainly given me something to think on!!!!!