What happens re: loan from my father if I go bankrupt?

gonnabeatthis_2

A couple of years ago my dad got a loan to help us out in his name. Currently paying him back in monthly installments, what happens if I go bankrupt?
Can't leave the old man high & dry.

Emmzi

He could regsiter as a creditor in your bankruptcy, if you acknowledge the debt to him. But then he'd have to take his percentage payout with the other creditors - you can't give him preferential treatment.

Kevicho

Cant you hold back a few months and see if you can pay as much back to him as you can before going b/r

Get another loan to repay him?

gonnabeatthis_2

I don't want him to have to do that. I don't want him to know I've gone bankrupt.

Emmzi

the problem is, if you sell assets etc to repay him, it's known as 'gratuitous alienation' ie selling things off so other creditors don't get their fair share. The receiver can ask for it back from him.

Honestly, if this is your only option, I think you are going to have to come clean.

Do you want to post your full position so people can give you advice on other options?

gonnabeatthis_2

Can't get another loan. In so much credit/loan doodoo noone else will lend to me.

gonnabeatthis_2

We (my wife & I) have been with CCCS for 12 months now and they advised us at the beginning that BR might be our best option but we decided to try a DMP, which we have been paying but it getting too much of a struggle with only one of us working now and me on reduced hours. It will take us around 15 years to pay it all off!

Wonder_Girl

Also getting a new loan that you KNEW you had no intention of every paying back is culpable conduct.

How much are you repaying your dad at?

Can you post a SOA so we can maybe offer alternative advice?

Wonder_Girl

gonnabeatthis wrote:

We (my wife & I) have been with CCCS for 12 months now and they advised us at the beginning that BR might be our best option but we decided to try a DMP, which we have been paying but it getting too much of a struggle with only one of us working now and me on reduced hours. It will take us around 15 years to pay it all off!

But this is only temporary, when OH goes back to work and if you increase you hours again it could be significantly reduced.

If you like you could PM me your CCCS ref and I will have a look over your account. I can assure you I will in the strictest confidence and I shall reply via PM

kathfisch

Why not post some details of your situation to get some more advice?

Bankruptcy is not the only solution, depending on the levels of your debt/income etc. There may be another solution to your problem (IVA, DMP) without the drastic step of bankruptcy.

Whatever happens, you may have to tell your dad anyway (I'm guessing he'd have to be named as a creditor in an IVA or DMP anyway - don't quote me on it!).

Is honesty not the best way forward anyway? If your dad has taken a loan for you in the past then he's known you've been in difficulty, no?

Sorry if any of this is wide of the mark or seems insenstive, we can't give better advice unless we know some more details.

Best of luck

Kath x

EDIT: Ok, so in the time it took me to write that you explained lots more stuff - ignore above post :rotfl:

gonnabeatthis_2

Wonder_Girl wrote:

Also getting a new loan that you KNEW you had no intention of every paying back is culpable conduct.

How much are you repaying your dad at?

Can you post a SOA so we can maybe offer alternative advice?

This not this case. When I got the loan we still thought we were ok and we meeting all our monthly payments. We never expected to be in this situation.

If you want to read our story about how we got into debt, my wife posted it on THIS page.