Borrowing Money From Family

BaldEagle

I'm in an ongoing dispute with my local council regarding housing benefits. They're underpaying me and dragging their heels in sorting anything out. Upshot is that I'm worse off now than before I went BR to the point where my outgoings now exceed my income.

One of my uncles has offered to lend me some money to help me through the current situation on a "pay it back when you can" basis. We're talking hundreds rather than thousands, if that makes a difference.

Do I need to report this to the OR?

debt_doctor

Hi,

If you are still undischarged then you cannot borrow more than £500 without informing the lender that you are BR. If uncle knows you are BR then you can borrow more than £500.

A complaint to the council benefits dept may be useful too.

I see no reason to report to the OR as you are complying with your restrictions if you follow the above.

DD

BaldEagle

Thanks for the prompt reply, DD. Yeah uncle knows about BR as he helped me with the fees so I thought it would be OK but wanted to run it past you guys on here.

Am putting together one of my finest ever complaint letters as we speak. Had to step away for 10 minutes as my blood was at boiling point!

Gray-Fox

debt_doctor wrote: »

Hi,

If you are still undischarged then you cannot borrow more than £500 without informing the lender that you are BR. If uncle knows you are BR then you can borrow more than £500.

A complaint to the council benefits dept may be useful too.

I see no reason to report to the OR as you are complying with your restrictions if you follow the above.

DD

Are you sure about this?

6. What are your duties as a bankrupt?

tell your trustee about assets and increases in income you obtain during your bankruptcy. (Note: by law you must inform your trustee of any property which becomes yours during the bankruptcy. Such property includes lump sum cash payments that you may receive, for example redundancy payments, property or money left in a will);

silvercar

BaldEagle wrote: »

I'm in an ongoing dispute with my local council regarding housing benefits. They're underpaying me and dragging their heels in sorting anything out. Upshot is that I'm worse off now than before I went BR to the point where my outgoings now exceed my income.

One of my uncles has offered to lend me some money to help me through the current situation on a "pay it back when you can" basis. We're talking hundreds rather than thousands, if that makes a difference.

Do I need to report this to the OR?

If you are getting less HB than in your SOA, should you ask for a reduced IPA?

BaldEagle

I don't have an IPA at this point. It's more a case of whether I have to mention it to the OR...

debt_doctor

Gray-Fox wrote: »

Are you sure about this?

Yes I am. The question related to the rules around borrowing money. You have quoted being in possession of income or assets, which is required to be reported.
Borrowing money is a liability not an income or asset.

DD

Gray-Fox

THanks debt doctor. The reason I contested what you said is because I'm going through this situation myself and I'm trying to get complete clarity.

Does this mean I can borrow money from someone in order to move house (i.e. to cover my deposit/rent) and the OR doesn't need to know about it, so long as the lender knows I'm bankrupt?

debt_doctor

Gray-Fox wrote: »

THanks debt doctor. The reason I contested what you said is because I'm going through this situation myself and I'm trying to get complete clarity.

Does this mean I can borrow money from someone in order to move house (i.e. to cover my deposit/rent) and the OR doesn't need to know about it, so long as the lender knows I'm bankrupt?

Yes, that is correct. Whilst obviously you would have to consider the affordability of paying it back, you can borrow above the £500 limit providing you make the lender aware of your BR.

DD

Gray-Fox

debt_doctor wrote: »

Yes, that is correct. Whilst obviously you would have to consider the affordability of paying it back, you can borrow above the £500 limit providing you make the lender aware of your BR.

DD

DD, please check your PMs.

debt_doctor

Gray-Fox wrote: »

DD, please check your PMs.

I have answered your PM.

DD