Giving Away Goods

PinkShoes_2

I am new to all of this and have not yet decided whether to go down the bankruptcy route, although it is looking more likely and I am now reading information which is really starting to make me panic.

For example two years ago I moved into my parents home because I was struggling financially but bankruptcy was not even a thought at that point and I gave a lot of my old furniture away because I couldn't use it, didn't want to pay storage and it wasn't even worth selling it. Now I am reading you can be get restrictions placed on you because you gave or sold items for less than they are worth five years before the bankruptcy.

How does anyone know they are going to be bankrupt in five years time?

Please help.

alltaken

In short you haven't given away, or sold items below value.

I doubt very much it will be of concern at all. I would be inclined to think that any old furniture is simply a non-value. I would have disposed of the furniture because it was worthless, scuffs, marks and generally worn to the point of having no sale value....

If this happened 2 months ago with furniture purchased 8 months ago and showing on your bank statements to be a value of £8000. Yes, this would be an issue.

2 years ago, no. You will not be asked 'What happened to your furniture from 2 years ago?' If you ever were, for whatever reason. Easily explained if the furniture was in such poor condition that it was not worth selling, no value. The official receiver would have to believe that you intentionally gave away assets below value. You gave away assets 2 years ago that had no value, as soon as the official receiver realised it was old furniture from 2 years ago. They would not pursue a punishment.

By punishment I mean a Bankruptcy undertaking. This in short means you will be discharged from Bankruptcy after 12 months, but the official receiver places a mini-restriction on you for 1-15 years. An example is a serious gambling addict taking 5 credit cards at £20,000 each and using the money withdrawn from each to gamble. They typically get 4 years of restrictions. Compare your non-issue old and worthless furniture (I mean this in the nicest way possible) and it quickly gives you some context of what the OR will issue a restriction undertaking for.

The undertaking itself simply means you can't become a Solicitor, obtain credit above £500 without declaring to the lender that you're bankrupt and being a company Director.

This forum has given me so much help with my recent bankruptcy, I hope you find as much help and try not to get too stressed, I know it's a difficult time. Good luck!

PinkShoes_2

Thank you I really appreciate that. I have been reading a lot of the threads but it is still so overwhelming.