Bankruptcy and gift from parents

Justtheticket85

I'm considering declaring myself bankrupt after being made redundant due to coronavirus. As part of my income, I get £100 from my parents as a standing order each month to help with my family living costs. This started about 6 months ago. Would the OR be likely to contact them to confirm what the income is for (that it isn't repayment of a loan or anything)? They are quite ill at the moment and I would rather they didn't know about the bankruptcy as it would worry them. My only other income is jobseekers allowance (hopefully this changes soon, interview for small part time job next week ) 

sourcrates

Get the money in cash instead, you must plan these things, don`t go rushing in like a bull in a china shop.

Whats your situation, how much debt do you have, homeowner or renting ?

Justtheticket85

Thanks for your reply  

I have been speaking to step change since May. They got me to contact all my creditors to get 6 month payment and interest holds. 
This is the one question they don't know the answer too. Unfortunately they live too far away to get this in cash. 
I am waiting to see the outcome of the interview I have before I do anything as I will have to submit my budget if I do go ahead and it will change slightly with extra income. 
26k unsecured debts, renting.

Any idea if they will look for further info on the standing order?

Thank you  

sourcrates

Dosen`t really matter where the money comes from, it will be classed as income, and you just tell the OR the details if asked.

I don`t see it been a problem, they certainly are not going to contact your folks, if they have any questions, they will ask you during your phone interview, its your bankrupcy, not theirs, data protection still applies don`t forget.

Justtheticket85

OK great thanks. I was just worried about them being contacted to confirm it or something. Thanks for answering my question. 

Justtheticket85

I had emailed the insolvency service before I posted here to ask this question. They have come back to say that I would declare this £100 as income (which I would anyway) and teh official receiver would make a decision themselves as to whether they would contact my parents. So it seems it is possible. Does anyone know if it is likely? It's the biggest stumbling block for me in this entire situation. 

Minkym00

Honestly it’s very unlikely.

Anamox

Can't you set up something like a Revolut card and ask your parents to pay the £100 onto that each month? Then it is sort of like a cash transfer in terms of traceability but they don't need to physically give you any cash.

You can then withdraw the £100 in cash from an ATM using the Revolut card or spend it on things like groceries etc.

jjdc

Don't go just declaring yourself bankrupt. Will cause issues further down the line, insurance can be harder to get, bank accounts are more restrictive, can limit certain job choices, and it costs money. Its not like you're deciding what to have for tea. Stop paying any none essential debts like credit cards, unsecured loans and see what happens over next few months. If you're lucky they'll default the debts quickly, so no more interest/fees, and hopefully you'll be back in employment. You'll probably be bombarded with letters, but they cant take what you don't have. 

Justtheticket85

I appreciate the advice but it's been since May that I have stopped payments. I know about insurance etc, my partner has set money aside for the fees and the next year's car insurance (which will most likely increase massively).
Situation isn't likely to improve, I was on maternity leave when made redundant and a job on the same salary is very very unlikely. Its just going to be a hard few years. 

luvchocolate

jjdc said:

Don't go just declaring yourself bankrupt. Will cause issues further down the line, insurance can be harder to get, bank accounts are more restrictive, can limit certain job choices, and it costs money. Its not like you're deciding what to have for tea. Stop paying any none essential debts like credit cards, unsecured loans and see what happens over next few months. If you're lucky they'll default the debts quickly, so no more interest/fees, and hopefully you'll be back in employment. You'll probably be bombarded with letters, but they cant take what you don't have. 

You have been in contact with Stepchange and their advice is to be taken seriously. You are taking onboard the help from posters on here who are very experienced in this field. 
I would take their advice over the one quoted above.