question regarding bankruptcy

desperado1_2

hi, i was just going to ask a quick question about bankruptcy. My husband and I have recently had our house repossesses and are now considering bankruptcy.

What my query is that my husband has a small business which he is hoping to sell for about £10k and return to work for somebody else. We will be using this money to pay off family and friends who have help us out. the problem is if we go bankrupt the offical receiver will want this money back. Does it make any difference if one of our creditors make us bankrupt, will the rule about the sale of my husbands business still count.

We are just deliberating whether we should go bankrupt or sit and wait for one of our creditors to do this.

Can anyone advise what is best to do

plumduff-2

the £10k is a potential problem as the OR would more than likely see this as an asset.. if you pay off a family debt with this, the OR may see it that you have treated one of your creditor preferentially and could reverse this action... by asking the family member for this money back..

You need qualified advice on this one... contact National Debtline for their opinion..