Can i empty my bank account in the days before bankruptcy?

3danimator2013

Hi all,

I'm planning on going to court next Tue (27th Aug) to petition for bankruptcy, but i get paid this Friday (23rd Aug)..can i take all my money out of my account after i get paid or will that be looked on badly by the courts? I really need to money to pay for bills and rent and stuff, and from what i gather, once i go bankrupt, my bank account will be frozen.

To complicate matters, one of the people i owe money to is Natwest Credit cards, and my main account is with Natwest. I have read that once you go BR, they can take money out of your account to pay for credit card debt you have with them. i cant let this happen as i need to money to live till next month.

Any advice will be greatly appreciated. Thanks for reading.

skylight

Yes you can. The money prior to BR is your money and not part of the BR estate.

However, spend it wisely and keep the proof of what you have spent it on in case the OR asks - essentials is fine, a holiday to Lapland or withdrawing £000's is not!

3danimator2013

Well, i was going to withdraw the whole amount which will be roughly £3400, about 2000 of which will go on bills and rent. The rest i want to keep for spending money and to buy food etc.. No holidays planned, but i did want to TOTALLY empty my bank account.

fermi

You can, but as said it must be for essential spending, and you may be required to account for what became of it.

John1993_2

Given what you say on your other thread (i.e. you are in the throes of an addiction which you still aren't dealing with), then you should think extremely carefully about what you are thinking of doing here.

If you spend this mony on your addiction, you may be in all sorts of trouble later.

3danimator2013

I understand. So, i'm assuming all this will come out when i go bankrupt? They are going to ask why i took my money out and exactly what did i spend it on? I'm already going bankrupt, what else can they do to me?
I'm not asking in order to get away with anything, i just don't want to get in any more trouble..
Next question would be, would it be also frowned upon if i get my company (who are aware of my BR) to pay my next salary into my fiancees account? They are willing to do that, if its acceptable.

fermi

3danimator2013 wrote: »

I understand. So, i'm assuming all this will come out when i go bankrupt? They are going to ask why i took my money out and exactly what did i spend it on? I'm already going bankrupt, what else can they do to me?

They may well do for that sort of amount.

What can they do?

See: http://www.bis.gov.uk/insolvency/personal-insolvency/bros-and-brus

Plus disposal of assets and/or putting them beyond the reach of the OR can under some circumstances be prosecutable offence.

So make sure you can justify what becomes of anything you withdraw. That way you should be OK.

3danimator2013 wrote: »

Next question would be, would it be also frowned upon if i get my company (who are aware of my BR) to pay my next salary into my fiancees account? They are willing to do that, if its acceptable.

There is nothing wrong with doing that. A lot of people do that in the short term while sorting a new bank account.

3danimator2013

Rather stupid and embarrassing question to ask, but i guess having a drug problem isn't really a valid excuse to use the money huh?

If i was seen to be getting help for it. would that smooth things over?

Goddamn, i don't even know you guys and i'm horribly embarrassed

Thanks again for answering

John1993_2

3danimator2013 wrote: »

I understand. So, i'm assuming all this will come out when i go bankrupt? They are going to ask why i took my money out and exactly what did i spend it on? I'm already going bankrupt, what else can they do to me?

Bankruptcy is a deal, and has to be agreed, it's not something that you can simply throw in the face of of your debtors, as a way of walking away. I am not sure who you mean by "they" but your deal includes the courts, and they can impose penalties up to, and including, imprisonment, if you try to abuse the system.

And no, having a drug problem would not likely be looked upon as a valid spend. Taking the money out just beofre you petition for bankruptcy, and spending it on drugs, will not be seen positively.

John1993_2

3danimator2013 wrote: »

I'm not asking in order to get away with anything, i just don't want to get in any more trouble..
Next question would be, would it be also frowned upon if i get my company (who are aware of my BR) to pay my next salary into my fiancees account? They are willing to do that, if its acceptable.

On this, it would depend on why the court believe that you did it. If it was for a genuine reason, you may be OK. If they thought that you were doing it to cheat the system then, again, it would not go down well.

Can I suggest that you get yourself down to the C.A.B. first thing in the morning? You could do with some proper legal advice.

3danimator2013

Thanks for the replies guys