Savings on Bankruptcy

rufusT

Hi

There's a possibility that could go bankrupt in a couple of years or so.
My wife and I have savings which are in accounts that are in my name although we do have a joint current account. The question is can she keep half the savings on bankruptcy even though the accounts are in my name ?

debt_doctor

Hi,
I think this could cause difficulties for you.
If you transferred the monies now in to her bank account then it would be likely to be considered as a Transaction at Undervalue (TaU) - or gifting the money away.
The OR has up to 5 years to go back and overturn such a transaction and effectively return the money back to the bankrupt for the benefit of the creditors.
Now, if it can be clearly demonstrated that some of the money went in to your savings account from your wife's bank account or direct from her salary etc, then you have an argument to be had - but the first consideration will be all of that money is yours.
DD

The_Real_Cheddar_Bob

It will be difficult to hide any amount of worth to the OR.

As per the post above, 5 years is a long time they can go digging.

Strachan

Have you spoken to Stepchange about your debt situation? You say that your may go bankrupt in a couple of years so it seems you are maybe managing with your head above the water. Talk to them about the possibility of a DMP. They probably wouldn't advise you on your savings but if your situation was to worsen you'd had have to start spending from them e.g. bills/groceries etc. That would be a natural progression of events