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isa and asset isue

Hi All
My father has a bankruptcy hearing next week. he has an isa for £1500 and he he has just received his final pay of £3000 what should we do with this ? is it ok to remove this so it is safe for after or is this illigal ??
Thanks
VJ
:D The glass is always half full, no exceptions !!:D

Comments

  • nervousmother
    nervousmother Posts: 2,885 Forumite
    Part of the Furniture Combo Breaker
    If he is not bankrupt yet he is able to use some of the funds for normal living expenses or the bankruptcy fees.
    Whatever he uses it for the OR may ask for receipts to prove this.
  • skylight
    skylight Posts: 10,716 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Home Insurance Hacker!
    I second that. Before BR you can do what you like with it - more or less.

    You cannot give it away, they will be asked for it back. Spending it will ask questions and you'll need receipts etc.

    However, if things like a new bed, new cooker etc are needed then buy them now with the funds. You are allowed, these are seen as essential and you would have the receipts for them. Plus you will not get credit for these items in the future should you need to buy them.

    Personally, to avoid the cash being "wasted" I would spend it now on something important and keep the proof. And thus answer the questions afterards.

    Thats for the ISA.


    Is this his final salary ever or final before BR? The usual part of his salary (if this is his final ever) is used for his normal bills as normal etc. If there is extra in there for reduncacy package etc then if paid before BR then the same rules apply.

    Remember that it needs to be reasonably traceable - if this had happened 6 months ago it would have been different, but spending several £k before BR is GOING to raise questions. In that vein, your Dad should not withdraw it in cash and give it to you to look on the QT and not tell anyone where it as after. The OR will question where it has gone and the worst that would be applied to your Dad if you did this would be a BRO - a restrictions order that basically extends his BR restrictions for several years.
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