Money as a gift

weareone

My parents have just sold their house and she has given me some money. Very kind of her I know. I told her not too but she forgot and she paid it directly into my bank (£2k) but I am currently bankrupt and am really worried that I have been paid it into the bank??????

fermi

The money would likely be treated as an after acquired asset by your OR/trustee, and if so could be claimed by them.

weareone

Oh no really?! what if I transfer it back to her account??? I only wanted a small bit to go shopping as my son an I are desperate for clothes and I wanted her to keep the rest for when we are made homeless to pay for a bond and rent.

debt_doctor

Hi,

I'm afraid I agree with fermi and also you have a duty to disclose the asset. To transfer the asset back could amount to an offence.
Your argument would be that you need some of that money to buy clothes and that if you could not use the monies for the reason they were given then you would be homeless.
It would be a tough fight, you would need a statement from your mother stating what the money was for and not just a random gift.
Best case senario you keep the clothing and bond monies and lose the rest, and even that could be hard to achieve.

DD

weareone

Really!!! Oh dear I am worried sick now I really need this money, I can't explain this to her she would feel awful. So I need to contact the OR to tell them it's in my bank? My sister
Suggested I transfer it back to my mum and say she made a mistake? It's genuinely money I am not going to just blow! I am still waiting for mortgage coming to take things further so don't know how long before I have to leave it could be months yet. Really really am worried now!

mysterio_2

weareone wrote: »

Really!!! Oh dear I am worried sick now I really need this money, I can't explain this to her she would feel awful. So I need to contact the OR to tell them it's in my bank? My sister
Suggested I transfer it back to my mum and say she made a mistake? It's genuinely money I am not going to just blow! I am still waiting for mortgage coming to take things further so don't know how long before I have to leave it could be months yet. Really really am worried now!

Any changes in financial circs the OR needs to be informed within 21 days...you could explain your needs etc and they "might and its a big might" let you have some but certainly not all or nothing at all.. but as fermi & DD have said its still an after aquired asset and could be taken seeing as it's such a large ammount..and if you try to transfer back or fail to disclose it's an offence meaning a heavy fine and possible imprisonment for non compiance as well as your bankruptcy discharge being suspended meaning your bankrupt till the OR says different....mortgage coming? i'm confused meaning what?

sorry its not the news you wanted to hear sadly......

fiveyearplan

What is the date of your BR?

fermi

weareone wrote: »

I can't explain this to her she would feel awful.

If your mum has been kind enough to give you this, then I think she would feel a lot more "awful" if she later finds out that you have lost the money and had to do without AND that you had not told her.

You NEED her in the loop so that she can confirm if needed with the OR that the money itself was not intended as a gift. She simply intended to pay for these things for you, and by mistake thought that the best way to do that would be to transfer the money.

traveller

Hi, 1st off, you are not going to get a suspended discharge over 2000 pounds. In order for that to come into the framework, you would have had to not have complied with the OR (not responded to interviews ). You would also have been requested to attend a public examination before a suspended discharge is on the cards.

I would be very surprised if you could even get this money out of your account, as there will be an amount over which the OR would have asked your bank to notify them ,if it went over.

However, on the assumption that this money is in there you need to comply the OR, you need to contact your examiner on Monday explaining the situation. As Fermi has said, you need your mum to verify she gave you the money when and what for.

You must tell them though, as you have to declare any change in your income. Your examiner will explain the next course of action, but please do not make yourself ill over it. I can reassure you that compared to what they deal with on a day to day basis, this is nothing to lose sleep over but you MUST tell them the situation immediately

capeverde

Just transfer the money back to your mother and get her to say it was a mistake and she had just meant to transfer £ 200 to pay for your childrens school clothes. Just say shes a bit dizzy and confused and paid the wrong amount.

mysterio_2

Traveller if you read my post it says the same...I said the discharge can be suspended for NON COMPLIANCE nothing more