parents loaning money to move?

shazbo

Hi, can anyone tell me please if we would have problems with my parents loaning us the money to move. They are happy to do it and we cant move without their help, at the moment we are in a nice house but it is WAY too small. Being BR we need all the usual money plus 6 months rent in advance which comes to quite a bit as you can imagine.

What are the rules on BR's borrowing money? am i right in thinking we can borrow any amount so long as we are honest about our situation. Also if they give the money to us can the OR claim it?

Any help would be great, thanks in advance

script

You can borrow us much as you like - providing you tell the "lender" that you are bankrupt.

So no problem with your parents.

The OR won't have a "call" on the money because it's not a windfall - it's necessary to allow you to move - essentially as you said it's a loan.

It would be a good idea to keep your own notes - i.e. how much you borrowed, and what was spent - so you can always prove where the money went.

The only snag might be in paying your parents back - this would have to be from your surplus income (as the OR won't allow you to pay back "debts" from your I&E).

Of course when you are discharged from Bankruptcy you can pay back whatever you wish.

shazbo

Thanks Script, what about if we are paying it back as rent? it will be paid upfront for the landlord but we pay my parents the £*** per month as we would for the LL?

script

I don't see why that should cause any problems.

And of course your rent is allowable on your I & E.

(just keep your on notes on everything - so you can show it's all above board).

shazbo

Thanks again Script, I am thinking of biting the bullet and just ringing the OR to confirm it will be ok but i am really nervous about that 'just in case'. Our OR has been nothing but polite and helpful but i just cant help the feeling that they will stop us moving, ive never liked having to ask for permission for anything

shazbo

Well i have emailed the OR so just have to wait now to hear, fingers crossed

Doucam

Hope you get the answer you need Shazbo.

shazbo

Thanks Doucam, and i am so pleased to tell you that we did, they said yes no problem, there is some criteria involved but nothing unexpected so now we just have to wait and see if the LL for the new property will accept us. everything else is falling into place the only problem we now face is their decision.

So still fingers crossed.

fredfedup

Thats very good news. Well done!
fred

Doucam

Excellent news Shazbo, so pleased for you.

dojoman

Great news Shazbo, you must be really pleased!