Bankruptcy question

Yuujiin

We are in the process of BR .We have had the house valued .

House worth £96k,mortgage £102 so we can hopefully keep the house.

The only thing we are worried about is that my wife held a savings account in her name.This was opened for her Dad as he got repossed in 1991 ,so my wife opened this account for her dads savings.

We have since closed the account 2 months ago but it had £7k in it which we gave to my wifes Dad.

Would this account in any way affect our claim for BR as it is now closed?

As dodgy as this looks this is the truth but will this raise concern with the OR?

Thanks in advance

Newbie06

I'm bumping this for you, not sure how to answer myself...

dalip

It's going to look very dodgy to the OR so expect a grilling. They may also want to confirm all this with your wifes father. At the end of the day it will be down to whether the OR believes you or not.Sorry i can not help more but unless you can prove it is your FIL money.........

dx

fiveyearplan

All you can do is tell the truth. If the money has already been given to your wife's dad. How long ago did your wife open the account? I would have thought it would be fairly easy for the OR to check that you are telling the truth however as the money was in an account in your wife's name technically it was her money.

It will be up to the individual OR how they deal with it. If they do ask for it back he could always say he doesn't have the money.

Yuujiin

Thanks for the replies.

Now really dont know what to do?

The account was opened 15 years ago and was only used as a way for the FIL to save money as they where blacklisted.

Now as ourselves where getting into money troubles at the start of this year we thought it would be best to close account ,giving all money back to FIL.We have now got into arrears and bankruptcy is our only option.So the OR will check banking history and want answers as to where this money has gone?

dalip

yes the OR will ask for the last 12-24 months statements of all bank/cc accounts that you both hold.Yes they will want to know where the money has gone. As FYP says you can only tell the truth. The OR would almost def contact you FIL to check and as FYP says may even ask for the money back. If this happens your FL can refuse to give the money back and as far as i am aware there is not a lot the OR can do.Dx

fiveyearplan

I hope common sense prevails in this case.