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A post BR loan. Repayment and the OR

Martin1892
Martin1892 Posts: 57 Forumite
in Bankruptcy & living with it
Hi Folks,

As some of you may recall I went BR in April 09. Shortly thereafter I took an interest free loan from my parents for £1000 to cover general living expenses as I was unemployed. It was agreed that once I got a job I would pay them back at a rate of £200 a month. I now have a job :beer:

How will the OR react to seeing this outgoing on my SOA? Is this allowed, or might i be better not declaring this situation and trying to spread the cost of the repayment through other allowed expenses such as groceries, travel etc.

Finally, i should say, my parents do know I am bankrupt, so as far as I am aware I am not breaching any rules about obtaining credit or a loan without declaring my status.

Thanks for any advice.
M

Comments

  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Hi Martin, you are right in that you are not breaking any rules. The OR will not allow this as an acceptable expense but you would be free to pay it from the part of the surplus that you keep
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • JCS1
    JCS1 Posts: 5,347 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Thought you had to declare you were bankrupt if obtaining credit of more than £500? Or would OR view this differently as its parents?
  • Martin1892
    Martin1892 Posts: 57 Forumite
    JCS1 wrote: »
    Thought you had to declare you were bankrupt if obtaining credit of more than £500? Or would OR view this differently as its parents?

    I have declared this. Obviously my parents were still happy to loan me the money. After all, they know where i live! ;)
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Yes but you have to declare the fact you are bankrupt to the lender not the OR and as martin says his parents know he is bankrupt. Im sure the OR would prefer it if people didn't get credit though.
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • JCS1
    JCS1 Posts: 5,347 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Sorry Martin, was half asleep and read it as your parents ddn't know. My fault.

    Hope the new job goes well.
  • Martin1892
    Martin1892 Posts: 57 Forumite
    JCS1 wrote: »
    Sorry Martin, was half asleep and read it as your parents ddn't know. My fault.

    Hope the new job goes well.

    No problem. And thanks, so far so good. Roll on payday :)
  • headoutofsand
    headoutofsand Posts: 939 Forumite
    Martin1892 wrote: »
    I have declared this. Obviously my parents were still happy to loan me the money. After all, they know where i live! ;)

    Can they not wait, till you are discharged for the repayment plan to commence? Then no problem. Thats if you are not on an IPA for instance.
    Better to be poor than a slave to wealth

  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    JCS1 wrote: »
    Sorry Martin, was half asleep and read it as your parents ddn't know. My fault.

    Hope the new job goes well.


    So did I !!:eek: - were we in the same pub last night ?:rotfl:

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
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