hypothetical money situation

macbabypam

Would appreciate if anyone could settle an argument. Would like to be in the situation but sadly it's hypothetical....

A man is an undischarged BR. He has struck a one off deal which will net him a large sum of money say £20k per month.

He has 2 choices, declare the money to the OR or ask someone to salt the money away in a bank account for him until he is discharged.

If he declared the money to the OR, does he only pay back the original debt which was for arguments sake £50k, woukd there be any extra charges to pay and could he completely reverse the BR.

On the other hand if this man thought he would chance hiding the money how easily could it be found by the OR.

This kept us debating for ages last night so I would appreciate other points of view....

Mr_F_Dorsetty

Errrrmmmm, pretty silly question if you know the law at all.

Not heard of the money laundering laws? Where is this mythical person to keep the money? How are you to spend it without getting reported? How many people know you are BK? How long before Mr A your neighbour reports you to someone? Remember your name was in the paper and the very people who read that gumpf are the ones who will drop you in it

Do you think you'd like prison food? If the OR found out then you'd certainly be deeper in the poo than you'd like.

If you said to the OR, I have gone BK for £50k and I can pay off one lump sum of £20k full and final because my family will pay up, and you can prove it comes from your family, almost certainly they'd take it and release you. But you of course will still have been BK and the 5yrs still counts

Of course some people go BK then disappear to warmer climes instantly for a few years until the dust settles... but if you have to ask that question then you are not the sort to play those games.

A lesson for life - information is the most important weapon in life; know what they know better than they do, so they do not know what you know.

TheGardener

Mr_F_Dorsetty wrote: »

Mr A your neighbour reports you to someone? Remember your name was in the paper and the very people who read that gumpf are the ones who will drop you in it

..all the other stuff aside - BR's are no longer 'in the paper' unless of course your daily read is the London Gazette?

debt_doctor

Mr_F_Dorsetty wrote: »

If you said to the OR, I have gone BK for £50k and I can pay off one lump sum of £20k full and final because my family will pay up, and you can prove it comes from your family, almost certainly they'd take it and release you. But you of course will still have been BK and the 5yrs still count

No they wouldn't!
DD

debt_doctor

If a BR has money available to pay ALL of the BR debts plus all of the costs (which can be substantial) then they could apply for annulment, which affectively means that the BR never happened.


The behaviour mentioned in your suggested case, would bring criminal charges, with a likelihood of prison.


DD

societys_child

macbabypam wrote: »

Would appreciate if anyone could settle an argument. Would like to be in the situation but sadly it's hypothetical....

A man is an undischarged BR. He has struck a one off deal which will net him a large sum of money say £20k per month.

He has 2 choices, declare the money to the OR or ask someone to salt the money away in a bank account for him until he is discharged.

If he declared the money to the OR, does he only pay back the original debt which was for arguments sake £50k, woukd there be any extra charges to pay and could he completely reverse the BR.

On the other hand if this man thought he would chance hiding the money how easily could it be found by the OR.

This kept us debating for ages last night so I would appreciate other points of view....

Mmm, not content with screwing your creditors once, you want to (hypothetically) screw them over again, nice . . .

SomebodyToldMe

I reckon if he declared the money to OR- that's it....£££ to the creditors.
However, if he did not mind the risk of doing porridge- the money would have to be moved out of the currency/ banks altogether- like buying up gold bars for example...what the hell....DO the creditors over twice

tigerfeet2006

The taxman also talks to the OR and will quite happily tell him about tax paid. At least you get 3 square meals in prison.

fiveyearplan

tigerfeet2006 wrote: »

The taxman also talks to the OR and will quite happily tell him about tax paid. At least you get 3 square meals in prison.

... and free heat and electricity. Have you seen the price of utilities these days? :eek:

fiveyearplan

How much longer until the hypothetical bankrupt is discharged? I didn't buy any lottery tickets during my BR however I did buy some for my OH just in case.

macbabypam

That's got us all thinking. I am BR and won't be discharged until September. Personally I would be delighted with an extra £20 per month never mind £20 k ! Just to reiterate, this is not a real situation. I am not cheating anyone and am impeccably honest with the OR.

I was talking to a friend who proposed this hypothetical scenario, she couldn't understand why you would own up to having the extra money. I know it's easy for her to say when you're not the one facing prison for fraud or have gone through stress of BR. I would probably have said the same before it happened to me.

However, I'm sure there is plenty people who have hidden assets and income from the OR and wonder how many actually get away with it. If the money was just stashed in a friends account that was not associated with you at all, how would anyone find out, if the money came from a legitimate source. If the BR did not transfer any of it into their own account until after AD would this raise suspicions? Do you think celebs do this as they always seems to have plenty money after BR?