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covlad1980
covlad1980 Posts: 57 Forumite
in Bankruptcy & living with it
Hey all I am currently considering br,One of my debts is from a club man that a old family friend,it only cpl hundred left on the account.If i WAS to clear this debt before Br would the Or look at this strange.

As would like to clear this debt before Br

Comments

  • philnicandamy
    philnicandamy Posts: 15,685 Forumite
    10,000 Posts Combo Breaker
    would be seen by the OR as favoring a creditor....cold land you in trouble once BR (could you not pay the ammount over time from any surplus you had?)
    We all die. The goal isn't to live forever, the goal is to create something that will
  • covlad1980
    covlad1980 Posts: 57 Forumite
    how do you mean phill, the account will be gone by xmas but cant wait that long it starting to effect my health feeling low alot more.
    I thought it might look like that ,that why I thoughtI would ask
  • covlad1980
    covlad1980 Posts: 57 Forumite
    anyone else if phill not online just need to knwo
  • antarctica
    antarctica Posts: 499 Forumite
    Phil means if you have an IPA (money out of your salary that needs to be paid to the OR) then you are allowed a small surplus each month.

    I think :)
    Look down your nose at me and I thumb my nose back at you. :p

    Bankrupt: 8th July 2009
    Early Discharge: 19th Jan 2010
    Proud BSC Member: 278
  • covlad1980
    covlad1980 Posts: 57 Forumite
    thought you have to include all debts in br
  • antarctica
    antarctica Posts: 499 Forumite
    yes you do. I think I'll wait for someone else to explain as I am not very good at it!
    Look down your nose at me and I thumb my nose back at you. :p

    Bankrupt: 8th July 2009
    Early Discharge: 19th Jan 2010
    Proud BSC Member: 278
  • kew63
    kew63 Posts: 255 Forumite
    With any debts you are suppose to treat all creditors fairly, which means if you have £25 available at the end of the month, then you pay each creditor pro-rata.

    If you do this prior to BR and keep records then you can show the OR that you have treated all creditors fairly.

    Clearing one creditor over another, just before BR isnt going to be a good idea, as you'll have to tick the box on your SOA that asks whether you treated any creditor specially and depending on your OR, could give you lots of hassle. Not sure what they could actually do about it after the fact, but with OR they seem to react much better when everything is up front, honest and done by the book.

    If you really felt badly about this particular creditor, not sure if it's allowed but cant see why after BR if you do have any £ that you couldnt pay back what you could. Hopefully someone more experienced on here would be able to say if that's possible.
    DMP Mutual Support Thread Member : 318
  • philnicandamy
    philnicandamy Posts: 15,685 Forumite
    10,000 Posts Combo Breaker
    edited 6 August 2009 at 4:36PM
    Covlad i've answered your PM....sorry for not getting back sooner (been one of those days!!)

    and you are correct antarctica..:D

    Phil
    We all die. The goal isn't to live forever, the goal is to create something that will
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Hi Covlad, all debts must be included in the bankruptcy. However if you do have surplus left each month there is nothing to stop you giving this money to anyone out of the goodness of your heart
    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.
  • covlad1980
    covlad1980 Posts: 57 Forumite
    I have pm you phill
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