SOA Help

michael1983l

If I was to go BR, I would have to do it with the conscent of my parents and I would have to follow the rules as well. I'd hope to defer payment to my parents until after discharge, so I could potentially build up a pot now that would cover the payments until then.

[Deleted User]

BR generally lasts for 12 months, so you would need a pot of at least £5,232.

Also, what you are proposing is of highly questionable legality.

The pot of money would still be yours, hence it would be an asset, which you would be obliged to declare, when you swear to the accuracy of your financial statement.

mattannar

£450 child maintenace, was this agreed in court or a settlement between you and your ex.

michael1983l

mattannar wrote: »

£450 child maintenace, was this agreed in court or a settlement between you and your ex.

Calculated on the government website and agreed in person.

debt_doctor

michael1983l wrote: »

May I ask you a question. If I have been making a regular payment to a parent for a loan recently and applied for BR. I know the courts could try and retrospectively take money back from my parents but in reality how likely is that to happen and can they force them to pay back what I have paid them in the past or just ask nicely?

Well, firstly, it depends if you were paying your other creditors or not at the time. If you paid the 'contractual amount' or a fairly calculated reduced amount to each creditor including your parent - then that is fine.
If you paid parent in full or substantial amount and other creditors little or nothing then you are likely to have made a Preference.


If the reason for the preference was to 'improve the parents position' because you were going BR then that is an Insolvency Offence, and the insolvency Service would ask for the parent to pay the money back.
If the parent cannot or claims they cannot pay then the IS will either do nothing (apart from jump up and down a bit) or take legal action against the parent to recover the monies.
The latter will happen if the funds are worth recovering - currently the IS will not instruct proceedings unless the gain is at least £5k.
DD

michael1983l

Bedsit_Bob wrote: »

BR generally last for 12 months, so you would need a pot of at least £5,232.

Also, what you are proposing is highly questionable legality.

The pot of money would still be yours, hence it would be an asset, which you would be obliged to declare, when you swear to the accuracy of your financial statement.

If I pay money off my loan before I go bankrupt, it is no longer an asset, so I don't have to declare it. Just explain where it has gone. I suppose?

I know it is a bit questionable, but it is the only way I can think of getting around the problem.

[Deleted User]

michael1983l wrote: »

Calculated on the government website and agreed in person.

Did you allow for the fact, you have them with you, for over 1/4 of the time?

michael1983l

Ok Debt Doctor, then it would be a problem. However my parents are taking the money from me in good faith and may not be aware of my financial problems so I do not understand how they could have legal proceedings against them to recover monies if they personally haven't broken any laws. But if thats the way it is then I will have to have a re-think.

I guess the reason for paying them is not to improve their position but because they cannot pay it themselves.

michael1983l

Bedsit_Bob wrote: »

Did you allow for the fact, you have them with you, for over 1/4 of the time?

Yes, 2 nights a week barely makes any difference at all.

[Deleted User]

So you are proposing to make a one off payment of £5,232, to the loan company, then not pay anything for 12 months?

I don't think the loan company will agree to that.

A one of payment would be classed as an overpayment (which would shorten the period of the loan), rather than an advanced payment.

They would still expect a payment every month, until the loan was cleared.