Money from my account

susiepink

After recieving my annual bonus from work I wishdrew £2000.00 to pay back friends and family for money they'd lent me to pay my bills and then I transferred £1000.00 to my partners account, it's money for a cooker, washing machine, carpet or whatever we need when we eventually get our own flat. What will happen to me? I've still paid my creditors every month, I'm a bit worried now about what the OR will have to say. If the OR looks at my account they will see at the beginning of this year money being paid in to the amount of approx £2000.00.

wherediditallgo

They will ask you what the money was spent on. If you tell them that you repaid loans to family & friends, they may take the view that you treated them as preferential creditors & may ask for that money back. They can't force your friends & family to return the money they got, but it won't look good for you if the OR asks & they refuse because you could be penalised for that.

Regarding the money for your future flat in your partner's account, that may be wanted back too, as the OR might see it as you hiding away an asset (money) that should be going to service your debts. I think you should either get that money back in your own account yourself before going BR, or leave it where it is but find another reason for why the money was transferred, as I don't think that savings towards a future home will sit too well with the OR.

The OR can impose a BRO/BRU if they feel that creditors have been treated preferentially, or assets have been deliberately disposed of. You can find info on them here. The number of them imposed is very small compared to the number of people made BR each year, but they aren't to be taken lightly as they can extend the BR restrictions for 2-15 years. I doubt that the amounts you're talking about would result in a BRO being set, but it's something you should bear in mind as some ORs have been stricter than others, especially if they feel the BR isn't co-operating. You don't have to roll over & die regarding ORs decisions, as if you disagree with a decision they've made you can appeal against it. However, you do have to be seen to be as co-operative as possible regarding disclosure of your assets & explanations of where money has gone.

susiepink

Well they can't have the money back and that's that so I'm in trouble. I borrowed money from friends and family and they are far more important than any credit card company who I've also paid religiously each month since I got my cards. I was told I could use money to buy essentials which I can't get yet as I'm flat sharing. I've a baby and I'm going to need that £1000 for him. Oh well, I could do with a nice break so if they lock me up it will be just lovely :mad:

wherediditallgo

It's really unlikely to go as far as that, Susie, so don't get upset. The key to all this is explaining to the OR what happened & why. Even if they ask your friends & family for the money back & don't get it, you won't be going to prison - it's just that if you get an over-zealous OR, he might take the view that you can't be allowed to pay them back & have £1000 of savings as well when you have debts it could help settle. You have to declare all savings in whatever form they're in (I think it was rog2 who had to surrender a £2 Premium Bond :eek:), & it's then for the OR to decide what to do about them. It's up to you whether you say that you've put £1000 in your partner's account, but be prepared for the questions to be asked & just be aware of what the rules are. Just don't stress over it - as long as you're as honest & open as you can be, you can't do any more.

susiepink

What happens when people gamble away thousands of pounds?? What does the OR do then? Should I go and buy a washing machine, tv, cooker, fridge freezer with the money as they are not allowed to take household goods? I feel sick. They can have the £1000 back if they get really nasty but the £2000 was for family and I'm not telling them who either. I'm terrified!

wherediditallgo

Susie, I don't know what I can say to make you feel better (where are the other forum members when you need them? ) other than what I've already said. I can see why you're concerned, but my personal view is that you should be honest with the OR. They're not all horrible, but they do have to get as much info as they can from you in order to assess your case properly.

I'd also give more thought to your decision not to reveal who you gave the money to. What you've done is totally understandable from your position - many of us (me included) would have done exactly the same, as we want to pay back those people who've helped us when things have been really bad. However, the OR isn't there to see things the way we do - they're there to assess your financial situation & see what (if anything) can be given to creditors. The BR regulations mean that the ultimate decision is supposed to be fair to you & enable you to have a fresh start after BR, but they need your help to do that - they need to ascertain that if they say there's no money available, that's actually the case. If you refuse to give the OR information they explicitly ask for, that's not going to help you - it may look like you've got something to hide.

I know it's hard, but try not to compare your own situation with other people's, as every case is different. There are some people who've got some savings & haven't been asked to hand it over, but there are others like rog2 who the OR seems to have decided to be particularly heavy-handed with & asked for the Premium Bond. Some people had the amounts on their SOAs accepted, but some had them reduced or the item disallowed completely. When you've done your SOA, please post it for us to have a look at & see what adjustments are needed. The SOA also gives you an 'Extra information' page for you to add anything else you'd like taken into consideration, & we can help you with that too if you wish.

tigerfeet2006

Don't know if this will work. You could say that you have been making regular payments to your creditors (which you have) and not to the reletives and this was you paying some of your credtors something towards what you owe them soyou weren't favouring one set of creditors against another. The £1000 pounds in your partners account you were moving before going BR as you would with DD's etc. Some of it is what you owe him, you need stuff for the baby also. Don't know if that'd be ok. Sure someone will correct me if it's not a good idea.

susiepink

The thing that really that upsets me is that most of my debt is caused by the fact I had a really bad cocaine problem, I've been clean for a while but loads of money used to come out of my account to pay for that, what will the OR say when he looks back at my account a couple of years ago, will they want that money back too?? I didn't know I was going to go bankrupt till recently so I've spent as I would every year, I borrow money ever year to pay my credit cards. I've never favoured any creditors and have had to struggle each month to pay them, if I'd known all of this originally I'd have just done a budget plan. This is all so scary maybe I should look at other options, not that I have any really.

tigerfeet2006

Susie please don't be scared by all this. What we have presented befoe you is the worst case scenarios. Going BR is a big unknown, what one OR will pick up on another won't. They may not want to see bank statements beyond a year especially if you are up front with them and honest about your finances this year. If you really are panicking PM Debt Doctor and have a chat as she is a CAB advisor. You've obviously made huge steps to get your life back on track and this is another one on the way. As I said to you also on the other post chat to CCCS again to get their views if BR is right for you.

susiepink

I have an appointment with the CCCS again on Friday with my new details so maybe they'll be able to help more, especially as I just blubbed down the phone at them. I'm sorry I am so stressed but just after I think I've found a solution I find out something else that sets me back,

everythingblogcast

I feel for you susiepink, sort out your family first mainly your son and then your parents then your friends then the credit cards. I hope you get it sorted and not get to stress about it. Good Luck