Investigated after bankruptcy

tippa123

Looking for some advice.

i was made bankrupt last year, served my time without working as my wife was supporting the family with her business and a few other projects.
all my accounts was closed down except my international Lloyd’s account. I continued to use this as normal (ish, without income it was fairly bare).
but in December, my wife was having business banking trouble and as my international account has high transfer limits for internet banking I agreed to help her move some money around.

i was discharged and started working again. And my first pay check i opened up a savings account with Lloyd’s and linked it to my internet banking. I put some money in there only for them to freeze my account. They had reported me to the insolvency department and from my international account too pending an investigation.

i am nervous that I broke some rules in December as it looks like I am earning, but I didn’t benefit at all. I really don’t want a fine or worse prison and an extended bankruptcy.
i currently have 0 money as still frozen, and I have no accounts to get paid into or my sons disability payments either.

did I break a rule? An I actually in trouble for just being nice?

John_

I can’t be sure what the outcome will be, but your actions do come cross as a bit out of the ordinary. Why did you now work for a year, for example, and why did this particular account stay open as opposed to a more standard current account?

tippa123

John, I didn’t work for a year as my oldest son is autistic and so I decided that it’s a great was to spend a sabbatical year while bankrupt. When I first questioned why the account was not shut I was told that it is an IOM account and judged differently. As it had no credit facility and seemed to remain functional I had no reason suspect otherwise.

tippa123

I am calling the investigating case worker when they open as I have their details to get some more information. I’ll update when I know more.

mwarby

I would guess Lloyds concern is that that for a year you were pennyless, then you start moving money through your account(because it has high transfer limits) then you start saving. I would guess it could look like you had attempted to conceal assets. Also worth bearing in mind that its normally a big no no to run business transactions through a personal current account. Also could the internet banking issues your partner have had been down to fraud checks going on ? Perhaps it looks like you've skirted these which could appear suspect

Lloyds may not want your custom going forwards, but it's not clear that this will be reported to your OR and even if it is they will need to prove wrongdoing before taking action. If everything is above board I don't see how you could be fined or sent to prison.

John_

tippa123 said:

John, I didn’t work for a year as my oldest son is autistic and so I decided that it’s a great was to spend a sabbatical year while bankrupt. When I first questioned why the account was not shut I was told that it is an IOM account and judged differently. As it had no credit facility and seemed to remain functional I had no reason suspect otherwise.

If the OR told you to exclude this account then you should possibly speak with them. If it was someone else then you may have been a bit foolish.

Wanabee2020

I suspect it would be down to the movement of cash during a bankruptcy period. Although not illegal to move money around, it would arouse suspicions if this was out of the ordinary, and during an active bankruptcy period. So long
 as you can prove/show why the funds were being moved around, and from where they came from, and went to, you should be fine.