Bankruptcy Offences

jon25

Hi all,

I am after some advice on Bankruptcy and the potential implications it brings.


it states on the CAB website that the following is an offence.

"giving away or selling property that you got on credit in the 12 months before you applied for bankruptcy, at a time when you hadn't paid for the property"


Please can you advise me whether the above applies to fixed sum loan agreements or just hire purchase agreements and what the likely outcome would be if I were to be declared bankrupt?

Thanks in advance for any guidance

antrobus

jon25 wrote: »

...Please can you advise me whether the above applies to fixed sum loan agreements or just hire purchase agreements and ....

It applies to all forms of credit.

jon25 wrote: »

..... what the likely outcome would be if I were to be declared bankrupt?...

Depends on what exactly you've done.

dojoman

jon25 wrote: »

Hi all,

I am after some advice on Bankruptcy and the potential implications it brings.


it states on the CAB website that the following is an offence.

"giving away or selling property that you got on credit in the 12 months before you applied for bankruptcy, at a time when you hadn't paid for the property"


Please can you advise me whether the above applies to fixed sum loan agreements or just hire purchase agreements and what the likely outcome would be if I were to be declared bankrupt?

Thanks in advance for any guidance

Have you done any of the above, please be more specific about your situation and maybe we can advise.

jon25

Thanks for the responses.

I had a laptop that was taken out using Pay4later but I had to sell it to cover my rent and some other bills since my GF lost her job and we stupidly have never saved anything just spent spent spent.

Now we are starting to pay the price

My Salary Income is £2900 after tax

Outgoings £3550

GF is struggling to get another job and we are dropping deeper and deeper into arrears.

I am under the impression i own the goods as it does not mention anything about repossession or security on the agreement.

It was sold at its value. I did not sell it cheap to just get some money.

fermi

If the goods are yours from the outset, then I would imagine there is unlikely to be any issue, as long as it does not appear that you took out the credit with deliberate intention of selling the item straight away.

debt_doctor

Hi,
I'm afraid that the comment on the CAB website is misleading.
Ownership of goods transfers immediately on completion of the credit transaction (subject to cooling off periods) unless on HP, Conditional Sale, Bill of Sale or other security.


It would have been more appropriate (I think) to say; Taking out credit with no reasonable prospect of repayment and at a time you ought to have known you were insolvent.
DD

fermi

debt_doctor wrote: »

It would have been more appropriate (I think) to say; Taking out credit with no reasonable prospect of repayment and at a time you ought to have known you were insolvent.
DD

Referring to this I think.

http://www.legislation.gov.uk/ukpga/1986/45/section/359

Even if that, can't see it applies very well to an unsecured loan, and even if by chance it did this would apply here

http://www.legislation.gov.uk/ukpga/1986/45/section/352

debt_doctor

fermi wrote: »

Referring to this I think.

http://www.legislation.gov.uk/ukpga/1986/45/section/359

Even if that, can't see it applies very well to an unsecured loan, and even if by chance it did this would apply here

http://www.legislation.gov.uk/ukpga/1986/45/section/352

Yes, exactly. There is so much more to it than the original statement made.
I don't think the poster has anything to worry about.
DD

jon25

Thank you very much guys for your replies you have put my mind a bit more at ease.

My Dad's best friend is a retired solictor he has said i can go and see him next week to ask and talk about any issues i am worried about.

I am hoping it will not come to Bankruptcy and the GF will get another job soon. I just want to be prepared for the worst case scenario

tigerfeet2006

Please also ring and talk to some one like National Debtline for some free, impartial, proffesional advice, just so you have advice from different sources.

https://www.nationaldebtline.org/

Did your friend specialise in bankruptcy?