Redundancy payment & Bankruptcy

SomebodyToldMe

Hi all,

I need some advice on this please.
I was made redundant over 2 years ago. At time of redundancy, my debts were more or less equal to my payout.
My thinking at the time was to keep the pay out as a some kind of saving, and try to get a job to be able to manage my commitments.
I transferred the money to my mum's saving account, as I only had a current account which I need, and have a general dislike of banks and their accounts anyway.
Anyway, after 6 months on Job seekers without any job success, I suffered ill health and was put on ESA sickness benefit.
During the whole time, I kept having to use my savings money to keep paying creditors, until now I can't go on.
My question is how will this look if I go bankrupt?
Will an OR look on this as I was trying to hide money? or will OR realise I was still paying creditors with this money?
Many thanks

debt_doctor

Hi,


I've seen a fair few people in your position, who keep paying their creditors and using the funds for reasonable living.
Highly unlikely it will cause you any problem if you can show how it has been spent and that it has actually been spent.
I presume that the JSA / ESA benefits were contributions based benefits so your 'capital' wouldn't matter.


DD

SomebodyToldMe

Many thanks Dr- yes all benefits was contribution-based