filling in forms re sale of house

worriedwoman_2

hi
I have started filling in my forms online... I will worry about how to print them out at a later date!
We sold our house two years ago and had a profit of £43,000. This was spent on several things... tax man, uni accommodation for 2 daughters, holiday, paying back personal loans from friends, and a bit on gambling.
We haven't gambled for a year now, so our bank statements from the whole of this year are fine.
I want to know if the OR will want bank statements going back to when we sold our house, as I really cannot remember where all the money went. Is my OH going to be in more trouble as we cannot account for £43,000. Will he want proof of where the money went? Will the gambling affect the BR???
All responses greatly appreciated!!

philnicandamy

The OR can go back as far as they want to really....usually though it tends to be at least 2yrs worth of statments etc..dont worry about having to account for everything the examiners have seen it all before..guestimates will usually be ok

the gambling could affect the bankruptcy..BUT seeing as its been a year since you did that would look good in the OR's eyes I imagine.

peachyprice

Just to add to Phil's reply, the fact that you paid back friends could be a problem with the OR too, as you were favoring friends over your other creditors.

The OR, in this instance, is quite likely to go over your bank accounts from the time of the sale thoroughly to account for the majority of the £43k.

worriedwoman_2

Do you think I could not mention the gambling, and wait to see if the OR needs more than a year's worth of statements?
Do you think he will definitely want statements from when we sold the house in August 07 so that he can see where the money went?

philnicandamy

peachyprice wrote: »

Just to add to Phil's reply, the fact that you paid back friends could be a problem with the OR too, as you were favoring friends over your other creditors.

The OR, in this instance, is quite likely to go over your bank accounts from the time of the sale thoroughly to account for the majority of the £43k.

missed that little addition thank you peachy (been a looooong day)


sadly though you cant really hide the gambling from the OR's for one you sign and swear on a legal document in court...and secondly it's only a matter of time they would fine out and then you could be in a whole world of trouble.....the OR can ask for what they want sadly no 2 offices are alike...mine was a relatively simple case yet they decided to look as far back as 5yrs ago...

worriedwoman_2

Oh dear, now I'm getting really worried about this whole thing. The friends who lent us money did so without telling their OHs. Could there be problems?
We are also trying to save the money to go BR. Would it be easier just to forget it and let HMRC make us BR instead? Is there any difference in doing it yourself or someone else doing it to you?

philnicandamy

worriedwoman wrote: »

Oh dear, now I'm getting really worried about this whole thing. The friends who lent us money did so without telling their OHs. Could there be problems? could do..the OR could ask for the cash back...but if they dont have then they'll need to speak to the OR's staff
We are also trying to save the money to go BR. Would it be easier just to forget it and let HMRC make us BR instead? Is there any difference in doing it yourself or someone else doing it to you? HMRC are one creditor that could make you BR but this could take sometime as at the minute they seem to be slowing on bankruptcies and settling for payment plans with people instead..no difference really if they do it apart from a few bits of paperwork and they pay the fees..

Hope that helps


just a few thoughs

peachyprice

The OR may not ask you for statements going back more than a year, but once he reads your forms it's likely they'll get them straight from the bank.

How much of the £43k did you spend on gambling, and how much of your eventual BR debt was due to it?

worriedwoman_2

I think about £8,000 was due to gambling. Not sure about the whole debt, as OH has about 8 credit cards up to the max, which he hasnt used for over 2 years. We don't have any statements, just letters from companies who the debts have been passed to.

Is there any disadvantage in HMRC making him BR over doing it himself.... do we still have to fill in all these awful forms? My OH is terrible with form filling and wants me to do it all for him but it is sooooo frustrating as I can't remember anything!

sieve

worriedwoman wrote: »

Is there any disadvantage in HMRC making him BR over doing it himself.... do we still have to fill in all these awful forms? My OH is terrible with form filling and wants me to do it all for him but it is sooooo frustrating as I can't remember anything!

You will save the BR fee but they will likely be ruthless and come and sieze your posessions first (and THEN make you BR for the remainder after they've auctioned everything) so it is a good idea to beat them to it.

You will have forms to fill in - not the same as if you petition yourself, but similar - the OR still needs to know where all your money has gone.

worriedwoman_2

We are living in rented accommodation now, and it is furnished, so I'm not sure what they will be able to take to auction....apart from my son's guitar, which I have mentioned before.