New query

larzie30

Okay so earlier this year I took out a loan to consolidate my credit card debt (10k) the reason being that by making minimum payments I would be about 300 before I paid them off but with the loan about 7 years (or 5 can't remember) anyhow I wasn't even thinking I would need something like bankruptcy then so never gave it a second thought. However now the situation is some of this credit card debt was as a second card holder on my mums credit card account (she never touched these two cards they were soley for me to use and pay (my bank statements show that for the last few years I have been making the minimum payments out of my account for these cards) will the OR take this on board or will he question it? And if they have issue what are the possible consequences?

Any advice appreciated.

Cheers

Larz

fermi

If you are only a second card holder on those credit card accounts, then you mum is the one legally liable for payment.

If you go bankrupt then those debts cannot be included and she will be liable in full for them. Who has been providing the funds to pay them up till now means nothing.

You certainly won't be allowed to budget for payments of these on your SOA, but may be able to pay out of any money you are left "informally".

larzie30

Sorry fermi, I am rubbish at making my posts make sense. I already took out a consolidation loan earlier in the year to incorporate all of my credit card debt (these included) it was before I needed to consider bankruptcy. Just wondering if there will be any fallout from that.

Lara

wurzella

Actually I'm in kind of the same boat, I recently paid off a small loan in my wife's name, before I knew I had to go bankrupt. With the feedback I've gotten it looks like the OR would have to right to demand that money back as it basically constitutes a gift, but it will be up to him if he exercises that right or not. Not very comforting I know.

larzie30

although in my case it wasn't a gift because all of the spending was mine, none of it was hers, so I was just consolidating my own debt its like me getting a loan and paying a debt to her and my credit cards i guess!! I think this may fall more under preferential payment, but this wasn't the case, as I wasn't expecting my world to fall apart at that point.

larzie30

But thanks wurzella, it was actually your post that got me thinking, I hope that your situation works out!!

wurzella

Yeah, I'm hoping the OR will accept that explanation as well. I didn't do it on purpose knowing I'd go BR, I was just trying to get my debts paid off and that happened to be the best one to pay off. I'm up in court tomorrow so I'll probably get to speak to the OR before you, I'll let you know the outcome, scary not knowing eh? :eek:

larzie30

thanks Wurzella, best of luck to you for tomorrow, for the whole process, i am sure you will breath a big sigh of relief tomorrow. Do you know if they did expect your wife to pay it back, would they take installments or do they expect you to pay it up front?

wurzella

Haven't even thoght about that. If they want it back she'll be going bankrupt as well! :rotfl::rotfl:

larzie30

Glad to see you are keeping your sense of humour ;-)