Help during bankruptcy

rcuj

Hi
I'm considering going bankrupt and have been looking at my budget. It's a bit touch and go to make ends meet and I wondered whether I am able to receive financial help from friends and family towards living costs during that year? 

rcuj

Ooops sorry I shouldn't've started a whole new thread. I'll post this on the "Ask a Stepchange" thread

MalMonroe

Hi, before you do anything else, I would advise contacting one of the debt help agencies. They are free and their advice is confidential, of course. I used StepChange but you could try either them or Citizens Advice or others, just google them.  Here's a helpful link. https://www.stepchange.org/ The adviser I spoke to at StepChange was so helpful, at the end of our telephone conversation I have to admit that I cried with relief. StepChange arranged for me to have a Debt Relief Order, a DRO. You may not need to go bankrupt, you might be able to get a DRO. Even if you do decide to go bankrupt, you have to pay a fee to do that. You also have to pay for a DRO but it's not as much. A debt adviser will be able to answer all your questions and offer a suitable arrangement, just to suit your circumstances. Please contact them, I really do feel that they saved my life as I didn't know which way to turn. It all does seem really scary but I can assure you that nobody is judgemental and they don't pry or try to belittle you in any way. Many people have financial troubles, sadly. But there is something you can do about it. It's free and it really does work. Please try!  And good luck. 

rcuj

Thanks for replying but at the risk of sounding arrogant I'm really only after a response to that one very specific question.

Minkym00

rcuj said:

Hi
I'm considering going bankrupt and have been looking at my budget. It's a bit touch and go to make ends meet and I wondered whether I am able to receive financial help from friends and family towards living costs during that year? 

Yes you can, but it may well trigger you into an IPA which you could pay for up to three years. 

mwarby

It will depend on your SOA, if you have reasoanble income and hence a reasoanble amount to spend on essentials, financial gifts may push you into an IPA. If however your SOA shows a low income and reasoanable expenditure, which leaves a negative surplus, financial help to bring that back to zero is probably ok

eg

income £1000

expenditure £1500

surplus £-500

getting say £100 to help with food shop should be a none issue

income £1500

expenditure £1500

surplus £0

getting say £100 to help with food shop is likey to be an issue, as OR could look at it as

income £1600

expenditure £1500

surplus £100

that would open you up to an IPA to recover that surplus

Now of course the OR won't be checking your christmas cards for money/cheques, nor will they be checking who pays the bill at the supermarket. What the OR may do though is check your bank statements and if you have regular undislosed income, or your claiming expenditure which you clearly arent making, that can be an issue

rcuj

Thanks for the replies. Triggering an IPA hadn't occurred to me as a possibility, but I'm definitely more in the income < expenditure category.

MalMonroe

rcuj said:

Thanks for replying but at the risk of sounding arrogant I'm really only after a response to that one very specific question.

Crikey. Well, first of all it's not just one year, it's 6 in all. And secondly, if you don't get any professional advice, you'll be a damn fool! 

fatbelly

rcuj said:

Hi
I'm considering going bankrupt and have been looking at my budget. It's a bit touch and go to make ends meet and I wondered whether I am able to receive financial help from friends and family towards living costs during that year? 

The general principle is 'a third party can do what it likes with its money'

If these are sporadic gifts, particularly if they go direct to a bill, like 'I'll take you clothes shopping' or 'give me your gas bill and I'll pay it' then I can't see that that would cause a problem

Regular payments into your bank account would raise questions.

Accumulating  a lump sum during the 12 months could result in the OR wanting that sum for your creditors