Questions From official receiver 18 March 2021 at 6:51PM in Bankruptcy & living with it 13 replies 577 views

P1BP27

2 questions.
Q1. Will the official receiver ask for proof or call up the persons who have been staying with? Basically I lived at a friends for 13 months and gave them cash of £500.00 every month for rent and bills. There was no contract written up and my friend didn't notify the council I was living there. He is concerned the Official receiver will call him and look into him. This is no good for me as I when It comes to explaining to the official receiver where £6500 as gone. Will they want to call my him?
Q2 I have since moved back home since December and give my parents £250.00 House keep. Again this is cash. I don't want them know that I have gone bankrupt. Will the OC ask for prove of this as again this will  further £1500 I have laid out & I don't want the OC contacting my parents. 
Many thanks,

luvchocolate

I had to show the examiner my tenancy agreement. So not sure how they will deal with this. 

The_Real_Cheddar_Bob

OP yes to both questions in a way, but the OR will ask you first for proof then investigate further if needs be.
Any regular amounts in the months immediately before BR will require justification. If your friend is worry the council will find out then you both have too much faith in the inter governmental communications. 

putting a tenancy agreement in place to cover the amount would be possible, but proceed with caution. It is very close to the line of bankruptcy fraud.
Regarding your parents, the unfortunate thing is the OR will take into consideration the fact you live at home. Paying them money will not be allowed so by moving in with your parents you have worsened your position. The OR will not allow you any money to pay them, it will be considered surplus and thus you will need to tell your parents why you can't pay.
I'd come clean now so they can help you. 

P1BP27

Thanks for the reply. There are people all the time having people living with them where no agreement was set up. There was no tenancy agreement as it was a school friend.  I just basically drew out £500.00 cash each month to pay for me living there. I moved back home as I couldn't  afford the £500 payments. All I want to know it the worst thing that can happen is the OR making a phone call to the person I stayed with for a year & them confirming I did that.
I gave my parents £250.00 as a token gesture as they Buy all my food  me each etc.  I have given them 5 months of £250.00 So your telling me the OR will want that back?

Indiana76

When my husband declared bankruptcy in 2019 we lived at his mums, when we went through our expenditure with the OR they never asked us for proof of anything,  we paid his mum board and bills (not classed as rent when living with family).  

luvchocolate

My examiner wanted 2 years bank statements he was looking for anything that jumped out. 
I'm pretty sure you will be ok paying board to parents..you have to live somewhere. 
The confusion maybe you're not allowed to keep paying back a loan to family as the debt is written off in bankruptcy. 
Board and lodgings are completely different. 
Just be honest and explain to the examiner 

P1BP27

Thanks... And how about the 500 I paid for a year for living a mates.....would they really chase this up as ask for proof... 

JCS1

The_Real_Cheddar_Bob said:

OP yes to both questions in a way, but the OR will ask you first for proof then investigate further if needs be.
Any regular amounts in the months immediately before BR will require justification. If your friend is worry the council will find out then you both have too much faith in the inter governmental communications. 

putting a tenancy agreement in place to cover the amount would be possible, but proceed with caution. It is very close to the line of bankruptcy fraud.
Regarding your parents, the unfortunate thing is the OR will take into consideration the fact you live at home. Paying them money will not be allowed so by moving in with your parents you have worsened your position. The OR will not allow you any money to pay them, it will be considered surplus and thus you will need to tell your parents why you can't pay.
I'd come clean now so they can help you. 

Paying board to parents is allowed, not sure what your reference is for saying otherwise? Perhaps you could provide a link.

It does however have to be reasonable, so you could not pay all your salary as board in order to avoid an ipa.

Sonic101

There are probably quite a few people who are lodgers, either with mates or other people, who don't have tenancy agreements (for some house shares I lived in I certainly didn't). The OR might want to check, but I don't think your mate has no reason to worry, the OR will want to check facts for your bankruptcy (not grass people up to the council, so i's unlikely that would happen if that is what he's worried about).
WRT living with your parents, as a grown adult I'm sure it would be seen as reasonable to pay £250 per month for board and lodgings, it's only if you were paying more than the cost of renting privately that it might be questioned. 

The_Real_Cheddar_Bob

JCS1 said:

The_Real_Cheddar_Bob said:

OP yes to both questions in a way, but the OR will ask you first for proof then investigate further if needs be.
Any regular amounts in the months immediately before BR will require justification. If your friend is worry the council will find out then you both have too much faith in the inter governmental communications. 

putting a tenancy agreement in place to cover the amount would be possible, but proceed with caution. It is very close to the line of bankruptcy fraud.
Regarding your parents, the unfortunate thing is the OR will take into consideration the fact you live at home. Paying them money will not be allowed so by moving in with your parents you have worsened your position. The OR will not allow you any money to pay them, it will be considered surplus and thus you will need to tell your parents why you can't pay.
I'd come clean now so they can help you. 

Paying board to parents is allowed, not sure what your reference is for saying otherwise? Perhaps you could provide a link.

It does however have to be reasonable, so you could not pay all your salary as board in order to avoid an ipa.

I beg to differ. Each OR will have their own interpretation of the situation. If you convince the OP to expect the best result then it will be far worse when the reality kicks in. Being reasonable yes is one thing, but let me point something out, £500 regular cash withdrawals will not go unnoticed. 

luvchocolate

Paying board to parents is allowed. 
The previous withdrawal for rent will need explaining.
Just be honest.